I did a search and found QuickTip: VerifyError with jdk 7:
If you are struggling with the following kind of error
java.lang.VerifyEr
I had similar problem when deploying my GWT app in GAE and I was using JDK 7. Switching the project to JDK 6 solved that issue (I forgot that at this time only JDK 5 and 6 is supported by GAE).
Ok, I found the solution. It's what I wrote at the very top. Turns out I was adding the argument to the wrong eclipse installation. It works now.
"If you are struggling with the following kind of error java.lang.VerifyError: Expecting a stackmap frame at branch target 6 bla bla bla …. then a simple solution is to add the following default JVM argument -XX:-UseSplitVerifier If you are doing it in eclipse, like i was, then goto Window -> Preferences -> Installed JREs -> and add the default parameter. What does this setting do? Oracle just mentions that it a new type checker with StackMapTable attributes. Huh! Enjoy! It is Oracle now." Thanks to this dude: http://vikashazrati.wordpress.com/2011/10/09/quicktip-verifyerror-with-jdk-7/
This is also possible by changing your run configuration: Run > Run configurations
Pick your Web Application project from the left, open the Arguments tab and add the -XX:-UseSplitVerifier argument to the VM arguments.
The benefits of this approach is also its downside: it only applies to this project, instead of an entire VM installation.