WILMINGTON, Del., June 29, 2016 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Ambac Financial Group, Inc. (NASDAQ:AMBC)?
- Did you purchase your shares between November 13, 2013 and June 30, 2015, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Ambac Financial Group, Inc. (“Ambac” or the “Company”) (NASDAQ:AMBC) between November 13, 2013 and June 30, 2015, inclusive, (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Ambac during the Class Period, or purchased shares prior to the Class Period and still hold Ambac, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://rigrodskylong.com/investigations/ambac-financial-group-inc-ambc.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) given the deterioration and increased volatility in the Company’s bond portfolio, including its Puerto Rican bonds, the Company had far greater losses and loss exposure to anticipated defaults than it had previously disclosed; (2) the Company’s credit risk surveillance strategies were inadequate; (3) the Company was failing to implement mitigation strategies in a timely manner to stabilize the residual value of its financial guarantee business; (4) as a result of the foregoing, the Company’s financial condition was much worse than represented; and (5) Ambac failed to maintain adequate internal controls over financial reporting. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on June 29, 2015, Puerto Rico’s governor announced that the island’s more than $70 billion in debt was “not payable” and Puerto Rico would likely default on upcoming interest payments. The governor’s announcement made Ambac’s true exposure immeasurably apparent: the Company was now potentially liable for up to $2.5 billion of the Commonwealth’s debt it insures.
On this news, shares of Ambac dropped almost 16%, closing at $16.64 per share on June 30, 2015, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than August 29, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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