Kohlberg Capital Beats Securities Fraud Claims

Law360, New York (October 11, 2011, 1:55 PM EDT) -- A federal judge tossed a putative securities class action Thursday against Kohlberg Capital Corp., a spinoff from private equity firm Kohlberg Kravis & Roberts, rejecting investors’ repeated efforts to tie its financial restatement to a scheme to boost its stock price.

U.S. District Judge Miriam Goldman Cedarbaum dismissed the second amended consolidated complaint with prejudice, finding that the plaintiffs failed to show that the business development company’s restatement in December 2009 was due to anything but honest accounting errors in valuing certain collateralized loan obligations. Three...
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