PHILADELPHIA, Nov. 10, 2003 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that class action lawsuits have been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased the securities of PMA Capital Corporation (Nasdaq:PMACA) (AMEX:PMK) between November 13, 1998 and November 3, 2003 (the "Class Period") seeking remedies under the Securities Exchange Act of 1934 ("PMA" or the "Company") (Nasdaq:PMACA) and on behalf of all persons who purchased securities of PMA issued in public offerings dated October 16, 2002, 4.25% Convertible Senior Debentures Due 2022 (the "4.25% Debentures") and June 5, 2003, 8.5% Monthly Income Senior Notes due 2018 (the "8.5% Notes") (AMEX:PMK)( collectively: the "Offerings") seeking remedies under Sections 11, 12 (a), 20 and 15 of the Securities Act of 1933.
On November 4, 2003, before the market opened, PMA disclosed in a press release and a concurrent SEC filing on Form 8-K, that it would record a pre-tax charge of $150 million primarily to compensate for PMA Re's inadequate loss reserves. Defendants stated that an internal review of the Company's reserves revealed that the material charge "relates to higher than expected underwriting losses in PMA Re's reinsurance operations, primarily from casualty business written in accident years 1997 to 2000." As a result of this charge, the Company suspended its common stock dividend, and has engaged Banc of America Securities LLC to explore "strategic alternatives." On the same day, PMA announced that it was in discussions with the Pennsylvania Insurance Department over the Company's insurance operations. Immediately following this announcement, the price of PMA common stock plummeted $8.11, or 61.7 percent, from its previous day's trading, to close at $5.03 per share. On November 6, 2003, PMA revealed that the write down will effectively force the Company to withdraw from the reinsurance business, and that defendant John W. Smithson had resigned as President and Chief Executive Officer of PMA.
If you wish to serve as lead plaintiff, you must move the Court no later than January 5, 2004. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.bernardmgross.com. Any member of the purported 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.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you purchased the securities of PMA during the period between November 13, 1998 and November 3, 2003, and sustained damages, you may no later than January 5, 2004 move the Court to serve as lead plaintiff of the Class, if you so choose.
Law Offices Bernard M. Gross recently filed the following class actions:
Company Class Period Lead Plaintiff
Deadline
Sportsline, Inc (Nasdaq:SPLN) 05/15/01 -- 09/25/03 12/08/03
Cambrex Corp. (NYSE:CBM) 10/21/98 -- 07/25/03 12/16/03
Goodyear Tire (NYSE:GT) 03/26/99 -- 10/22/03 12/22/03
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca