MINNEAPOLIS, Jan. 23, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Ambac Financial Group ("Ambac" or the "Company") (NYSE:ABK) publicly traded securities during the period October 19, 2005 through November 26, 2007 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before March 17, 2008. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Ambac and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company's insurance coverage on collateralized debt obligations ("CDO") contracts. The Complaint alleges that Defendants concealed the following facts: 1) that Ambac lacked requisite internal controls to ensure that the Company's underwriting standards and its internal rating system for its CDO contracts were adequate, and, as a result, the Company's projections and reported results issued during the Class Period were based upon defective assumptions; 2) that the Company's financial statements were materially misstated due to its failure to properly account for its mark-to-market losses; 3) that the Company would be forced to tighten its underwriting standards related to its asset-backed securities, which would have a direct material negative impact on its premium production going forward; 4) that the Company had far greater exposure to anticipated losses and defaults related to its CDO contracts containing subprime loans, including even highly rated CDOs, than it had previously disclosed; 5) that Ambac had far greater exposure to a potential ratings downgrade from one of the credit ratings agencies than it had previously disclosed; and 6) that Defendants' Class Period statements about the Company's selective underwriting practices during the 2005 through 2007 timeframe related to its CDOs backed by subprime assets were false.
If you purchased Ambac Financial Group securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685