Update: This case settled on January 16, 2019.
Pomerantz LLP has filed a class action lawsuit against Och-Ziff Capital Management Group LLC ("Och-Ziff" or the "Company") and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-3251, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Och-Ziff securities between February 9, 2012 and April 25, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Och-Ziff is a publicly owned investment management company that was founded in 1994 and is based New York, New York with additional offices in London, United Kingdom; Hong Kong; Tokyo, Japan; Bangalore, India; and Beijing, China.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company violated relevant anti-bribery laws by accepting an investment from the Libyan Investment Authority, a sovereign wealth fund; (ii) the Company loaned $234 million to help finance two ventures in the Democratic Republic of Congo in violation of the Foreign Corrupt Practices Act ("FCPA"); (iii) beginning in 2011, the Company received subpoenas from the Securities and Exchange Commission ("SEC") and the United States Department of Justice ("DOJ") in connection with the transactions mentioned above; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On February 3, 2014, the Wall Street Journal ("WSJ") reported that the U.S. Department of Justice (the "DOJ") joined a widening investigation of banks, private-equity firms and hedge funds, including Och-Ziff, relating to the possible violation of anti-bribery laws in their dealings with Libya's government-run investment fund. The article also stated that the criminal investigation by the DOJ was proceeding alongside a civil probe by the SEC that began in 2011.
On the news, Och-Ziff stock fell $0.87, or 6.7%, to close at $12.08 on heavy volume.
On April 27, 2014, the WSJ published an article providing details about the Och‑Ziff investments in Africa under investigation by the SEC and DOJ. The article stated that the probe centered on two loans totaling $234 million, to companies controlled by a controversial mining executive, which helped finance two ventures in the Democratic Republic of Congo involving properties that were the subject of ownership disputes.
On this news, shares in Och-Ziff fell $1.28, or almost 10%, on heavy trading volume, to close at $11.65 on April 28, 2014.