R Glad House Holdings, LLC v. Lipper Holdings, LLC

On February 20, 2003, in R Glad House Holdings, LLC v. Lipper Holdings, LLC, 03 CV 1144 (RO) (S.D.N.Y.), an important federal securities class action was filed against Lipper Holdings, LLC, Kenneth Lipper, Abraham Biderman and Edward Strafaci, in the United States District Court for the Southern District of New York, by plaintiffs’ counsel Kucker Marino Winiarsky & Bittens, LLP, and New Jersey co-counsel, Cohn Lifland Pearlman Herrmann & Knopf LLP. In the civil complaint, plaintiffs allege that defendants substantially overvalued the fund assets, by approximately 40%, collected excessive performance based management fees, distributed deceptive written materials, and artificially inflated the value of fund assets in representing and reporting the performance, profits and value of the assets to investors from 1995 through 2001, which were violations of Section 12(2) of the Securities Act of 1933, Section 20(a) of the Securities Exchange Act of 1934, Section 10(b) of the Securities Exchange Act of 1934, SEC Rule 10b-5 and state securities laws.