MIAMI, Feb. 23, 2012 /PRNewswire-USNewswire/ -- Lawyers for prominent Miami investor and philanthropist Hugh Culverhouse intend to expand the class action lawsuit they brought against the Paulson companies. The lawsuit filed in the U.S. District Court for the Southern District of Florida on February 21, 2012 alleges that the Paulson companies recklessly bought a large position in Chinese timber company Sino-Forest, which has been exposed as a potential fraud.
Culverhouse's lawyers, Harvey Gurland of Duane Morris LLP and Lawrence Kellogg of Levine Kellogg Lehman Schneider + Grossman LLP—both in Miami—said other investors suffered similar losses when the company's stock plummeted 70 percent in June 2011. They estimate that there may be hundreds or even thousands of such investors.
The lawsuit asserts that the flaws in the approach of Sino-Forest – which has undergone both internal and external investigations and is battling two of its own class actions – should have been obvious to a sophisticated hedge fund manager, and that the Paulson companies are culpable for the drastic deterioration in share value that its investors suffered as a result of Sino-Forest. John Paulson took responsibility for the failure of his research in an investors' conference call on July 21, 2011, according to a Reuters news story.
More information for current and former investors in the Paulson Advantage or Paulson Advantage Plus funds can be found at www.duanemorris.com/sinoforestpaulsonlawsuit or contact Harvey Gurland (at 305.960.2214 or email@example.com) or Lawrence Kellogg (at 305.403.8788 or firstname.lastname@example.org).
About Duane Morris
Duane Morris LLP, a full-service law firm with more than 700 attorneys in offices across the United States and around the world, offers innovative solutions to the legal and business challenges presented by today's evolving global markets.
About Levine Kellogg Lehman Schneider + Grossman LLP
LKLSG is a Miami-based commercial law firm providing focused, efficient, and hands-on representation in high-stakes legal proceedings including complex commercial litigation, bankruptcy and receiverships, lender/borrower litigation and workouts, and labor and employment litigation.
SOURCE Duane Morris LLP