SOURCE: Dyer & Berens LLP

March 04, 2009 14:16 ET

Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased or Acquired Triad Guaranty Inc. Common Stock Between 10/26/06 and 11/10/08; Announces Upcoming Investor Deadline -- TGIC

DENVER, CO--(Marketwire - March 4, 2009) - Dyer & Berens LLP today announced that it has filed a class action lawsuit in the United States District Court for the Middle District of North Carolina on behalf of certain investors of Triad Guaranty Inc. ("Triad" or the "Company") (NASDAQ: TGIC) who purchased or otherwise acquired the Company's common stock between October 26, 2006 and November 10, 2008, inclusive (the "Class Period"). The complaint charges Triad and certain of its senior officers with violations of the federal securities laws.

If you wish to serve as a lead plaintiff, you must move the Court no later than March 30, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint alleges that, during the Class Period, defendants made false and misleading statements to the market about the Company's business and financial condition. For example, defendants failed to disclose that: (i) the Company was not adequately accounting for its loss reserves in violation of Generally Accepted Accounting Principles, causing its financial results to be materially misstated; (ii) the Company failed to engage in proper underwriting practices for its book of business related to insurance written in 2006 and 2007, including the insurance related to its Alt-A and pay-option adjustable rate mortgage products; (iii) the Company had far greater exposure to anticipated losses and defaults related to its book of business related to insurance written in 2006 and 2007, including its Alt-A and pay-option ARM portfolios, than it had previously disclosed; (iv) the Company lacked effective internal controls to detect fraud and misrepresentations in the underwriting process; and (v) the Company failed to disclose the true risks associated with its ability to continue to write new business and, given rating downgrades and capital limitations, the Company would be forced to liquidate its Canadian subsidiary and stop writing new insurance policies and transition the business to run-off. As a result of defendants' false statements, Triad stock traded at artificially inflated prices during the Class Period reaching as high as $58.45 per share in January 2007.

Beginning in late August 2007 and continuing throughout 2008, Triad began to acknowledge serious issues surrounding its exposure to anticipated losses and defaults related to its book of business for its Alt-A and pay-option ARM products written in 2006 and 2007 due to a failure to engage in proper underwriting practices, resulting in a decline in Triad's stock price. On November 10, 2008, Triad issued its financial results for the third quarter of 2008, reporting a net loss for the quarter ended September 30, 2008 of $160.1 million. On this news, Triad's stock price dropped to close at $0.70 per share on November 11, 2008.

Plaintiff seeks to recover damages on behalf of Triad investors. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    682 Grant Street
    Denver, CO 80203
    Tel: (888) 300-3362 or (303) 861-1764
    Email: Email Contact
    Website: www.DyerBerens.com