SOURCE: Abraham, Fruchter & Twersky, LLP

March 12, 2008 18:39 ET

Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against PMI Group, Inc.

NEW YORK, NY--(Marketwire - March 12, 2008) - Abraham, Fruchter & Twersky, LLP has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of the common stock of PMI Group, Inc. ("PMI" or the "Company") (NYSE: PMI) during the period between November 2, 2006 through March 3, 2008 (the "Class Period").

PMI is a publicly owned investing holding firm, and through its subsidiaries, provides credit enhancement products designed to promote homeownership and facilitate mortgage transactions in the capital markets of several countries. The Complaint alleges that during the Class Period, PMI and certain of its officers and directors violated the federal securities laws by issuing materially false and misleading statements regarding PMI's business model and financial condition, which had the effect of artificially inflating the market price of the Company's common stock.

As a result of defendants' false statements and concealment, PMI stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $50.21 per share in February 2007. Then, on March 3, 2008, after the market closed, PMI announced its preliminary fourth quarter 2007 financial results and a delay in filing its Form 10-K for year-end 2007 because it was awaiting financial information from an equity investee, FGIC Corporation ("FGIC"), that was necessary for the Company to complete its financial statements. On this news, PMI's stock collapsed to $6.43 per share on March 4, 2008, a one-day decline of 5% and an 87% decline from its Class Period high in February 2007.

Plaintiffs are seeking to recover damages on behalf of all purchasers of PMI common stock during the Class Period (the "Class"). The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at achen@aftlaw.com. If you wish to serve as lead plaintiff, you must move the Court no later than May 11, 2008. 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 a member of the proposed class.

Contact Information

  • Contact:
    Arthur J. Chen, Esq.
    Abraham, Fruchter & Twersky, LLP
    One Penn Plaza, Suite 2805
    New York, New York 10119
    Tel.: (212) 279-5050