HARTFORD, Conn., March 9, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Texas on behalf of all persons who purchased or otherwise acquired the publicly traded securities of HCC Insurance Holdings, Inc. ("HCC" or the "Company") (NYSE:HCC) between May 3, 2005 and November 17, 2006, inclusive (the "Class Period"). Also included are all shareholders of record on April 3, 2006 and all those who purchased in the Secondary Offering on or around November 18, 2005.
The Complaint alleges that HCC and certain of its officers and directors violated Federal Securities laws. Specifically, stock option grants were backdated such that the description of the Company's granting practices in the Company's financial reports were untrue. As a result, during the Class Period, HCC's reported earnings and shareholders' equity were artificially inflated in each of its financial reports due to understated compensation expenses.
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. On this news, the price of HCC stock dropped 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%.
If you are a member of the class, you may, no later than May 7, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snlaw.net.