NEW YORK, March 8, 2007 (PRIME NEWSWIRE) -- Labaton Sucharow & Rudoff LLP filed a class action lawsuit on March 8, 2007 in the United States District Court for the Southern District of Texas, on behalf of persons who purchased or otherwise acquired publicly traded securities of HCC Insurance Holdings, Inc. ("HCC" or the "Company") (NYSE: HCC) between May 3, 2005 and November 17, 2006, and shareholders of record on April 3, 2006, (the "Class Period"). The lawsuit was filed against HCC, Edward H. Ellis Jr. (former CFO), Stephen L. Way (former CEO), Chris L. Martin (former General Counsel) and Walter J. Lack (former Chairman of the Compensation Committee) ("Defendants").
If you are a member of this class you can obtain a copy of the complaint and join this class action online at http://www.labaton.com/en/about/press/HCC.cfm
The complaint alleges that Defendants violated Sections 10(b), 20(a) and 14(a) of the Securities Exchange Act of 1934 and Rule 10b-5, and Rule 14(a)-1 to 14(a)-9 promulgated thereunder. Specifically, the complaint alleges that Defendants: (1) backdated stock option grants, such that the description of the Company's granting practices in the Company's financial reports were untrue; (2) the Company's reported earnings and shareholders' equity was artificially inflated in each of its financial reports during the Class Period due to understated compensation expenses; and, (3) the Company's financial reports were not presented in accordance with GAAP and were artificially inflated and did not accurately present the Company's actual performance.
On November 16, 2006, after the market closed, HCC announced that it had backdated option grant dates from 1997 through 2006 and that it would restate financial reports previously filed with the SEC and disseminated to investors in press releases. In response to this announcement, the price of HCC stock dropped materially falling from a close of $31.64 on November 17, 2006, to a low of $28.81 on November 20, 2006 (the next trading day), representing a one-day share price decline of 9% on volume of 6.6 million shares.
Plaintiffs are represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought HCC securities between May 3, 2005 and November 17, 2006, and shareholders of record on April 3, 2006, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than sixty days from today. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.