NEW YORK, April 13, 2007 (PRIME NEWSWIRE) -- Harwood Feffer LLP today announced that a class action suit has been commenced on behalf of all persons who purchased the common stock of HCC Insurance Holdings, Inc. (NYSE:HCC), ("HCC" or the "Company") between May 3, 2005 and November 17, 2006, both dates inclusive (the "Class Period").
The action is pending in the United States District Court for the Southern District of Texas, and names as defendants, the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Harwood Feffer web site at www.hfesq.com.
The Complaint charges defendants with violations of Sections 10(b), 20(a) and 14(a) of the Securities Exchange Act of 1934 and Rule 10b-5, and Rule 14(a)-1 to 14(a)-9 promulgated thereunder. The Complaint alleges that, during the Class Period, the defendants issued materially false and misleading statements regarding the Company's business, management practices, systems and controls, and financial results, and failed to disclose: (i) that the Company had engaged in an illegal stock option backdating scheme; (ii) that the Company had improperly understated executive compensation expenses in its public financial statements filed with the SEC; (iii) that the Company's financial reports filed with the SEC were materially overstated and not in compliance with the GAAP standards; and (iv) that as a result of the foregoing, the Company stock traded at artificially inflated prices throughout the Class Period.
The defendants' wrongdoing was finally exposed on November 16, 2006, when HCC stunned investors with its announcement that it had improperly backdated stock option grant dates from 1997 through 2006 and that as a result, it would be required to restate the Company's financial reports filed with the SEC. Upon news of the upcoming restatement, the price of HCC stock plummeted from a closing price of $31.64 on November 17, 2006, to a low of $28.81 on November 20, 2006 (the next trading day), amounting to a 9% market value drop in a single trading day, on heavy trading volume.
If you are a member of the class described above, you may, not later than May 7, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Harwood Feffer, or other counsel of your choice, to serve as your counsel in this action.
Harwood Feffer has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Harwood Feffer website (www.hfesq.com) contains additional information about the firm. You may view a copy of the initial complaint, find more information about this and other matters, and obtain information about your rights by visiting the firm website or by contacting Jeffrey M. Norton at 877-935-7400 (ext. 286), Tanya Korkhov (ext. 207) or another firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca