Gerova Financial Group ("Gerova") is a multinational reinsurance company. Stillwater Capital Partners ("Stillwater") is an investment management firm.

According to the press release dated March 25, 2011, the lawsuit alleges violations of the federal securities laws and breaches of fiduciary duty against Stillwater, Gerova and certain of their current and former officers and directors for failing to disclose material adverse facts, including related party transactions, in connection with the Share Exchange, resulting in substantial losses for Stillwater Funds' investors.

According to the Transfer Order from the Judicial Panel on Multidistrict Litigation dated October 7, 2011, five actions in the Eastern District of New York and the Southern District of New York were transferred under a single coordinated action in the Southern District of New York, In Re: Gerova Financial Group, Ltd., Securities Litigation, case number 11-md-02275-SAS.

An amended Class Action Complaint was filed on October 26, 2011. The Defendants responded by filing two motions to dismiss on December 7, 2011.

On March 6, 2012, the Court issued an order granting in part and denying in part Defendants' motions to dismiss all state law claims.

On April 3, 2012, the Court issued an order pertaining to related case 1:11-cv-07107-SAS. The Court granted in part and denied in part Defendants' motions to dismiss. From Plaintiffs' amended Complaint, Counts I, IV, and VII were dismissed and Counts II, III, V, and VI survived Defendants' motions to dismiss.

On April 23, 2012, the Court issued an order pertaining to related case 1:11-cv-03081-SAS. The Court granted in part and denied in part Defendants' motions to dismiss. From Plaintiffs' amended Complaint, Counts I and II as they relate to a certain individual Defendant, Count III, and Count IV are dismissed. All other counts remain.

On February 4, 2014, the parties entered into a Stipulation and Agreement of Settlement. This Settlement was preliminarily approved by the Court on February 5, 2014.