HARTFORD, Conn., May 23, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Michigan on behalf of all persons who purchased the common stock of MGIC Investment Corporation ("MGIC" or the "Company") (NYSE:MTG) between February 6, 2007 and February 12, 2008, inclusive (the "Class Period").
The Complaint charges that MGIC and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's business and financial results. Specifically, it is alleged that defendants failed to disclose the following: (i) the Company's investment in Credit-Based Asset Servicing and Securitization LLC ("C-BASS"), a joint venture between MGIC and Radian Group Inc., was materially impaired as C-BASS was experiencing increasing margin calls and C-BASS investments were declining in value at a significant rate; (ii) 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 (iii) MGIC 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.
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 C-BASS. 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. During the Class Period, MGIC stock traded as high as $70.09 per share in February 2007.
If you are a member of the class, you may, no later than July 15, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the Defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.