SOURCE: Kaplan Fox & Kilsheimer LLP

February 27, 2008 14:32 ET

Kaplan Fox Seeks to Recover Losses for Investors Who Purchased the Securities of Ambac Financial Group, Inc.

NEW YORK, NY--(Marketwire - February 27, 2008) - Yesterday, Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) filed a class action suit in the United States District Court for the Southern District of New York on behalf of all persons who purchased the securities of Ambac Financial Group, Inc. ("Ambac" or the "Company") (NYSE: ABK) between October 19, 2005 and January 15, 2008, inclusive (the "Class Period") against Ambac and certain of its officers and directors for violations of the Securities Exchange Act of 1934.

The Complaint alleges that during the Class Period the Company issued materially false and misleading statements about Ambac's business and financial results and materially misrepresented, inter alia, its exposure to collateralized debt obligations ("CDOs") and subprime mortgages. It is also alleged that defendants failed to mark down the Company's CDO and other mortgage-backed security assets in a timely manner, resulting in the Company issuing materially false and misleading financial statements and results. Moreover, it is alleged that certain executives of the Company reaped millions of dollars in proceeds from the sale of Ambac shares during the Class Period at artificially inflated prices.

It is also alleged that on January 16, 2008 Ambac announced its preliminary fourth quarter 2007 results which included an estimated net loss of $3.4 billion for the fourth quarter, including an approximate $1.1 billion loss that was attributed to CDOs backed by subprime mortgages. As a result, it is alleged the price of Ambac stock plummeted on January 16, 2008 to close at $12.97 per share, a 38% decline from the prior day close.

If you are a member of the proposed Class, you may move the court no later than March 17, 2008 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at www.kaplanfox.com.

If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:

Contact Information

  • Frederic S. Fox
    Joel B. Strauss
    Donald R. Hall
    Jeffrey P. Campisi
    KAPLAN FOX & KILSHEIMER LLP
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address: mail@kaplanfox.com

    Laurence D. King
    KAPLAN FOX & KILSHEIMER LLP
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: mail@kaplanfox.com