NEW YORK, June 18, 2008 (PRIME NEWSWIRE) -- Attorney Advertising. The law firm of Milberg LLP announces that it is investigating possible illegal conduct as alleged in proposed class action lawsuits filed in the United States District Court for the Eastern District of Michigan and the United States District Court for the Eastern District of Wisconsin against MGIC Investment Corporation, Inc. ("MGIC" or the "Company") (NYSE:MTG) and certain of MGIC's officers and directors for violations of the Securities Act of 1934. The lawsuits are on behalf of all purchasers of securities from October 12, 2006 through February 12, 2008, inclusive (the "Class Period").
MGIC, through its subsidiary, provides private mortgage insurance to the home mortgage lending industry in the United States.
According to the complaints, defendants issued materially false and misleading statements regarding the Company's business and financial results. Allegedly, as a result of defendants' false statements, MGIC stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $70.09 per share in February 2007. On February 13, 2008, MGIC issued a press release announcing its fourth quarter 2007 results and reporting a net loss for the quarter of $1.47 billion, including an after-tax charge of $33 million related to equity losses incurred by Credit-Based Asset Servicing and Securitization LLC ("C-BASS"), a joint venture between MGIC and Radian Group Inc. As a result of this news, MGIC's stock fell $1.57 per share to close at $12.61 per share on February 13, 2008, a one-day decline of 11%. This was the lowest price at which MGIC's stock had traded in over thirteen years.
The true facts, which were known by the defendants but concealed from the investing public during the Class Period, as alleged in the complaints, were as follows: (a) the Company's investment in C-BASS was materially impaired as C-BASS was experiencing increasing margin calls and C-BASS investments were declining in value at a significant rate; (b) the Company was materially overstating its financial results by failing to properly value its investment in C-BASS and by failing to write down that investment in a timely fashion in violation of Generally Accepted Accounting Principles; and (c) the Company had far greater exposure to anticipated losses and defaults related to its book of business related to insurance written in 2005 through most of 2007 than it had previously disclosed.
If you purchased or acquired MGIC securities from October 12, 2006 through February 12, 2008, you may move the court no later than July 15, 2008, and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.
Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:
Lori G. Feldman Milberg LLP One Pennsylvania Plaza, 49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081 Email: contactus@milberg.com
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.