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