Carlyle Shareholder Cries Fraud Over IPO

Law360, New York (June 22, 2011, 4:20 PM EDT) -- A Carlyle Capital Corp. investor launched two fraud class actions Tuesday in Washington accusing the defunct mortgage-backed fund and its former directors of concealing its morbid condition in advance of a ruinous 2007 initial public offering.

Carlyle Capital — a residential mortgage-backed securities investment fund spawned by private equity juggernaut the Carlyle Group — and the fund's former brass blatantly lied to investors about the fund’s ruinous losses and gross overleveraging in order to capitalize on an IPO that would never have occurred had the facts...
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Case Information

Case Title

PHELPS v. STOMBER et al


Case Number

1:11-cv-01142

Court

District Of Columbia

Nature of Suit

Securities/Commodities

Judge

Amy Berman Jackson

Date Filed

June 21, 2011


Case Title

PHELPS v. CARLYLE CAPITAL CORP.


Case Number

1:11-cv-01143

Court

District Of Columbia

Nature of Suit

Securities/Commodities

Judge

Amy Berman Jackson

Date Filed

June 21, 2011

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