Rigrodsky & Long, P.A. Announces Investigation on Behalf of Fund Investors of Direct Lending Income Fund, L.P. and Direct Lending Income Feeder Fund, Ltd.
WILMINGTON, Del., April 03, 2019 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
-- Did you subscribe to limited partnership interests in Direct Lending Income Fund, L.P. or Direct Lending Income Feeder Fund, Ltd.? -- Did you subscribe to your interests from January 18, 2015 through March 19, 2019, inclusive? -- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that it is investigating possible violations of federal securities laws on behalf of all persons or entities that subscribed to limited partnership interests in Direct Lending Income Fund, L.P. (the “Partnership”) or Direct Lending Income Feeder Fund, Ltd. (the “Offshore Fund,” and collectively with the Partnership, the “Funds”) (for which Direct Lending Investments, LLC (“DLI” or “the Company”) acted as an investment adviser), from January 18, 2015 through March 19, 2019, inclusive.
If you invested in the Funds, and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at email@example.com, or at http://rigrodskylong.com/contact-us/.
On March 22, 2019, the Securities and Exchange Commission (“SEC”) charged DLI with falsifying payment information for QuarterSpot, Inc. (QuarterSpot”), resulting in the Company’s overstatement of the valuation of its position in QuarterSpot by an approximate cumulative amount of $53 million, overstatement of the Fund’s returns between 2014 and 2015, and making $11 million in over-charges of management and performance fees to the Funds.
Specifically, the SEC alleged that Brendan Ross (“Ross”), DLI’s owner and then-chief executive officer, arranged with QuarterSpot to falsify borrower payment information for QuarterSpot’s loans and to falsely report to DLI that borrowers made hundreds of monthly payments when, in fact, they had not. The SEC alleges that many of these loans should have been valued at zero, but instead were improperly valued at their full value.
On March 19, 2019 DLI announced to Fund investors that its position in QuarterSpot may have been materially overstated for a period of years, and that, following the request of DLI’s management committee that he take a leave of absence, Ross had formally resigned all positions at DLI on March 18, 2019 and had ceded control to its management committee.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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