KKR Financial Holdings LLC Announces the Dismissal of Previously Disclosed Class Action Lawsuit

SAN FRANCISCO, Nov. 22, 2010 /PRNewswire/ -- KKR Financial Holdings LLC (NYSE: KFN) (the "Company") today announced that the United States District Court for the Southern District of New York dismissed the putative class action complaint filed by the Charter Township of Clinton Police and Fire Retirement (the "Charter Litigation").  As the Company disclosed previously, plaintiffs in the Charter Litigation alleged the Company's April 2007 registration statement and prospectus and the financial statements incorporated therein contained material omissions in violation of the Securities Act regarding the risks and potential losses associated with the Company's real estate-related assets, the Company's ability to finance its real estate-related assets, and the adequacy of the Company's loss reserves for its real estate-related assets.  By order issued November 17, 2010, the Court ruled that these claims were without merit and dismissed the Charter Litigation with prejudice.  Plaintiffs have thirty days from the entry of the judgment to a file an appeal.  

Two related actions asserting derivative claims based on the same facts operative in the Charter Litigation – one filed in the Superior Court of California, County of San Francisco and the other filed in the United States District Court for the Southern District of New York – remain outstanding.  The Company intends to defend these actions vigorously.    

About KKR Financial Holdings LLC

KKR Financial Holdings LLC is a specialty finance company with expertise in a range of asset classes. KFN's core business strategy is to leverage the proprietary resources of its manager with the objective of generating both current income and capital appreciation.  KFN is externally managed by KKR Financial Advisors LLC, a wholly-owned subsidiary of KKR Asset Management LLC, which is a wholly-owned subsidiary of Kohlberg Kravis Roberts & Co. L.P.  KFN executes its core business strategy through majority-owned subsidiaries.  Additional information regarding KFN is available at http://www.kkr.com.

SOURCE KKR Financial Holdings LLC

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