MINNEAPOLIS, Feb. 29, 2008 (PRIME NEWSWIRE) -- Lockridge Grindal Nauen P.L.L.P. filed a class action suit in the United States District Court for the Southern District of New York on behalf of all persons who purchased the securities of Ambac Financial Group, Inc. ("Ambac" or the "Company") (NYSE:ABK) between October 19, 2005 and January 15, 2008, inclusive (the "Class Period") against Ambac and certain of its officers and directors for violations of the Securities Exchange Act of 1934.
The Complaint alleges that during the Class Period the Company issued materially false and misleading statements about Ambac's business and financial results and materially misrepresented, inter alia, its exposure to collateralized debt obligations ("CDOs") and subprime mortgages. It is also alleged that defendants failed to mark down the Company's CDO and other mortgage-backed security assets in a timely manner, resulting in the Company issuing materially false and misleading financial statements and results. Moreover, it is alleged that certain executives of the Company reaped millions of dollars in proceeds from the sale of Ambac shares during the Class Period at artificially inflated prices.
It is also alleged that on January 16, 2008 Ambac announced its preliminary fourth quarter 2007 results which included an estimated net loss of $3.4 billion for the fourth quarter, including an approximate $1.1 billion loss that was attributed to CDOs backed by subprime mortgages. As a result, it is alleged the price of Ambac stock plummeted on January 16, 2008 to close at $12.97 per share, a 38% decline from the prior day close.
If you are a member of the proposed Class, you may move the court no later than March 17, 2008 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
Plaintiff seeks to recover damages on behalf of the Class. Lockridge Grindal Nauen P.L.L.P. has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. The firm has offices in Minneapolis and Washington, D.C.
If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Karen H. Riebel, Esq. (khriebel@locklaw.com) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.