NEW YORK, March 9, 2007 (PRIME NEWSWIRE) -- The Brualdi Law Firm announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of Texas on behalf of purchasers 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").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased HCC common stock during the period described above, you have certain rights, and have until no later than 60 days from March 8, 2007, in which to move for Lead Plaintiff status. Any member of the purported 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. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
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.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca