PHILADELPHIA, Dec. 1, 2003 (PRIMEZONE) -- The law firm of Donovan Searles, LLC, announces that a class action lawsuit has been filed on behalf of all purchasers of the publicly traded common stock (NASDAQ:PMACA) and the publicly issued 8.50% Notes of PMA Capital Corporation ("PMA") (AMEX:PMK) beginning on or about May 29, 2003 and thereafter, inclusive (the "Class Period"). The suit names the Company and certain former officers and directors as defendants and is filed in the United States District Court for the Eastern District of Pennsylvania. Pollin v. PMA Capital Corporation, Civil Action No. 03-06122-EL.
The Complaints allege that defendants violated Sections 11 and 12 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. As alleged in the Complaint, PMA's public statements during the Class Period were materially false and misleading because (a) PMA maintained inadequate loss reserves for its PMA Re subsidiary; (b) reserve requirements for PMA Re announced in connection with the initial public offering of the Notes were materially insufficient; and (c) as a consequence of the understatement of loss reserves, PMA's earnings and assets were materially overstated at all relevant times.
On November 4, 2003, PMA issued a press release announcing that it would have to increase its loss reserves for PMA Re by $150 million, and would be suspending its common stock dividend. This news caused an immediate drop in the price of PMA's common stock and the trading values of the 8.50% Notes. On November 6, 2003, PMA issued a press release announcing the resignations of its president and chief executive officer and its chairman of the board.
If you purchased PMA Notes or other securities during the Class Period, you may, no later than January 5, 2004, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained substantial losses in PMA securities during the Class Period, please contact Michael D. Donovan of Donovan Searles, LLC, at 1-800-619-1677 or 215-732-6067. Donovan Searles, LLC maintains a website at http://www.donovansearles.com