On November 17, 2010, Judge Paul A. Crotty of the United States District Court for the Southern District of New York granted in its entirety the Defendant’s motion to dismiss in a securities class action brought against KKR Financial Holdings LLC, a REIT heavily invested in RMBS. Plaintiffs alleged that KKR had not sufficiently disclosed in its April 2007 registration statement the degree of risk associated with the leverage in its portfolio. The Court found that the allegations were “conclusory, based on hindsight,” that the registration statement clearly disclosed the risks associated with KKR’s financing, and that KKR was under no obligation to provide dollar estimates of potential future losses. Decision.