DIRECT LENDING INVESTMENT ALERT: Bragar Eagel & Squire, P.C. Continues to Invest Direct Lending Income Fund, L.P. and Direct Lending Income Feeder Fund, Ltd. on Behalf of Unit Holders and Encourages Fund Investors to Contact the Firm
Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, continues to investigate potential claims on behalf of investors 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. Our investigation concerns whether DLI has violated the federal securities laws and/or engaged in other unlawful business practices.
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On March 22, 2019, the Securities and Exchange Commission ("SEC (News - Alert)") 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 Fnds.
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.
If you subscribed to limited partnership interests in the Funds, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.