HARTFORD, Conn., March 17, 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 Northern District of California on behalf of all persons who purchased the common stock of The PMI Group, Inc ("PMI" or the "Company") (NYSE:PMI) between November 2, 2006 and March 3, 2008, inclusive (the "Class Period").
The Complaint charges that PMI and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that Defendants concealed the following facts: (i) PMI's investment in FGIC Corporation ("FGIC") was materially impaired as FGIC's bond insurance arm had significant exposure to defaults on bonds it insured due to the plunge in value of mortgage debt; (ii) PMI was materially overstating its financials by failing to properly value its investment in FGIC and to write down that investment in a timely fashion; (iii) PMI was not adequately accounting for its loss reserves; (iv) PMI failed to engage in proper underwriting practices for its business related to insurance written in 2005 through most of 2007 and consequently, had much greater exposure to anticipated losses and defaults than previously disclosed; and (v) given the deterioration of the subprime market, PMI would be forced to tighten its standards and stop writing insurance policies to certain categories of borrowers.
On March 3, 2008, PMI announced its preliminary fourth quarter 2007 financial results and that its Form 10-K for year-end 2007 would be delayed because it was awaiting financial information from FGIC necessary to complete its financials . On this news, PMI's stock fell to $6.43 per share on March 4, 2008, an 87% decline from its Class Period high of $50.21 per share in February 2007.
If you are a member of the class, you may, no later than May 11, 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.