Stillwater Investors Launch Suit Over Gerova Deal

Law360, New York (April 25, 2011, 1:23 PM EDT) -- A Stillwater Capital Partners Inc. investor launched a breach of contract class action Thursday in New York claiming Stillwater sold assets to Gerova Financial Group Ltd. to avoid paying investors the more than $100 million it owed in unpaid redemptions.

The deal, reached in January 2010, called for Stillwater investors to receive stock in Gerova, a blank check company based in the Cayman Islands, in exchange for the liquidation of their accounts, according to the complaint. But Gerova never registered the shares, leaving investors helpless as...
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