SOURCE: Brower Piven, A Professional Corporation

April 12, 2010 16:10 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $1,000,000 From Investment in The Hartford Financial Services Group, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the June 1, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - April 12, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of The Hartford Financial Services Group, Inc. ("The Harford" or the "Company") (NYSE: HIG) during the period between December 10, 2007 and February 5, 2009, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 1, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard. 

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 because, contrary to the Company's assurances during the Class Period that the Company's capital position was sound and could fully support its current credit rating, the Company's regulatory capital position was weak and deteriorating as a result of the Company building massive exposure to losses from derivative investments, including credit default swap contracts, way beyond the "corporate bond" risk references included in The Hartford's quarterly conference calls with analysts, the Company's leveraged risk through a securities lending program in which it invested the cash collateral it received from third-party lenders in extremely risky investments, including residential and commercial mortgage-backed securities, the Company's hedging program becoming increasingly expensive to maintain due to high volatility in the equity markets, and the Company's exposure to the U.S. real estate market and credit default swap contracts. In addition, the complaint alleges that during the Class Period, the Company overstated its book value by not accruing for liabilities for repayment of workers compensation insurance premiums consistent with what was actually justified. According to the complaint, after the Company report unexpectedly poor fourth quarter and 2008 year-end financial results on February 5, 2009, the value of The Hartford's stock declined significantly.

If you have suffered a net loss for all transactions in The Hartford Financial Services Group, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact