SOURCE: Stull, Stull & Brody

June 12, 2008 18:57 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of MGIC Investment Corporation

NEW YORK, NY--(Marketwire - June 12, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Eastern District of Wisconsin on behalf of purchasers of the common stock of MGIC Investment Corporation ("MGIC" or the "Company") (NYSE: MTG) between October 12, 2006 and February 12, 2008 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought MGIC stock through your MGIC retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges MGIC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MGIC, through its subsidiary, provides private mortgage insurance to the home mortgage lending industry in the United States. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, MGIC stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $70.09 per share in February 2007.

On February 13, 2008, MGIC issued a press release announcing its fourth quarter 2007 results and reporting a net loss for the quarter of $1.47 billion, including an after-tax charge of $33 million related to equity losses incurred by Credit-Based Asset Servicing and Securitization LLC ("C-BASS"), a joint venture between MGIC and Radian Group Inc. As a result of this news, MGIC's stock fell $1.57 per share to close at $12.61 per share on February 13, 2008, a one-day decline of 11%. This was the lowest price at which MGIC's stock had traded in over thirteen years.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company's investment in C-BASS was materially impaired as C-BASS was experiencing increasing margin calls and C-Bass investments were declining in value at a significant rate; (b) the Company was materially overstating its financial results by failing to properly value its investment in C-BASS and by failing to write down that investment in a timely fashion in violation of Generally Accepted Accounting Principles; and (c) the Company had far greater exposure to anticipated losses and defaults related to its book of business related to insurance written in 2005 through most of 2007 than it had previously disclosed.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired MGIC's common stock during the Class Period, which is between October 12, 2006 and February 12, 2008. If you purchased or otherwise acquired MGIC's common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased MGIC's common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than sixty days from May 16, 2008.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    Email Contact
    1-800-337-4983
    fax: 212/490-2022
    6 East 45th Street
    New York, NY 10017