Shareholder Notice: Zwerling, Schachter & Zwerling, LLP Alerts Purchasers of MGIC Investment Corporation (MTG) Securities of Jul
21 Maggio 2008 - 12:30AM
PR Newswire (US)
NEW YORK, May 20 /PRNewswire/ -- On May 12, 2008, Zwerling,
Schachter & Zwerling, LLP ("Zwerling Schachter") filed the
first class action lawsuit in the United States District Court for
the Eastern District of Michigan on behalf of all persons and
entities who purchased or otherwise acquired the securities of MGIC
Investment Corporation ("MGIC" or the "Company") (NYSE: MTG) during
the period from February 6, 2007 through February 12, 2008,
inclusive (the "Class Period"). On May 16, 2008, a different law
firm, unrelated to this firm or the filed action, issued its own
incorrect notice regarding the Zwerling Schachter filing of the
class action. The unrelated firm set forth an incorrect deadline of
July 11, 2008 for the filing of a motion by any party seeking to be
appointed lead plaintiff. This notice is being issued to correct
that misinformation. As described below, the correct deadline for
any party to file a motion seeking to be appointed lead plaintiff
in this case is July 15, 2008. MGIC operates, through its
subsidiaries and affiliates, as a credit enhancement company that
provides credit protection products and financial services to
mortgage lenders and other financial institutions. One of MGIC's
affiliates is Credit-Based Asset Serving and Securitization
("C-BASS"), which is engaged in the business of investing in
credit-sensitive residential mortgage assets. The complaint alleges
that defendants violated Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically the complaint alleges that defendant issued false and
materially misleading statements that misrepresented and failed to
disclose: (a) that the C-BASS acquisition of Fieldstone adversely
affected C-BASS liquidity; (b) that the Company's $516 million
investment in C-BASS was materially impaired; (c) that the
Company's loss reserves were inadequate in light of the worsening
housing market and increases in defaults and foreclosures; (d) that
the Company's Wall Street bulk transaction business was
experiencing substantial losses and no reserves were established to
absorb these losses; and (e) that, because of the increases in
losses and drain on liquidity, the Company was not adequately
capitalized. On July 30, 2007, after the market closed, MGIC issued
a press release announcing that the value of its investment in
C-BASS was "materially impaired." In response to this announcement,
on July 31, 2007 the price of MGIC's common stock declined from
$45.44 per share to $38.66, on extremely heavy trading volume. Then
on February 13, 2008, MGIC disclosed that it lost $1.47 billion, or
$18.17 a share, in the fourth quarter of 2007. The Company blamed
the loss, in part, on a $1.2 billion "premium deficiency reserve"
relating to Wall Street bulk transactions. On February 13, 2008,
MGIC's stock price closed at $12.61 a share, which represented a
nearly $60 a share decline from the Class Period high. If you
purchased the publicly traded securities of MGIC during the period
of February 6, 2007 through February 12, 2008, inclusive, you may
apply to serve as lead plaintiff. The lead plaintiff is responsible
for overseeing the prosecution of the action and ensuring that the
interests of the class are protected. Should you desire to be lead
plaintiff, you may apply to be appointed through Zwerling
Schachter, as counsel. If you wish to discuss this securities class
action or have any questions concerning your rights and interests
with respect to this matter, please contact Zwerling Schachter
(Shaye J. Fuchs, Esq. or Jayne Nykolyn) at 1-800-721-3900 or by
e-mail at or . Zwerling Schachter concentrates in prosecuting class
actions nationwide on behalf of investors. The firm currently plays
a leading role in numerous major securities and complex commercial
litigations pending in federal and state courts and has offices in
New York City, Garden City, New York, Boca Raton, Florida and
Seattle, Washington. The firm has been recognized by courts
throughout the country as highly experienced and skilled in complex
litigation, particularly with respect to federal securities class
action litigation. Visit our website at: http://www.zsz.com/
DATASOURCE: Zwerling, Schachter & Zwerling, LLP CONTACT: Shaye
J. Fuchs, Esq., , or Jayne Nykolyn, , both of Zwerling, Schachter
& Zwerling, LLP, +1-800-721-3900 Web Site: http://www.zsz.com/
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