Securities Suit Against Kohlberg Capital Gets Booted

Law360, New York (July 28, 2011, 8:03 PM EDT) -- A New York federal judge on Thursday threw out a putative class action lodged by investors in Kohlberg Kravis & Roberts spinoff Kohlberg Capital Corp. over a financial restatement, saying plaintiffs failed to show the company acted dishonestly.

U.S. District Judge Miriam Goldman Cedarbaum issued a ruling from the bench in Manhattan court granting the company's request to dismiss the complaint, alleging the company artificially inflated its stock price by failing to properly account for the fair value of its investment portfolio. But the judge allowed...
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