MINNEAPOLIS, May 28, 2008 (PRIME NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Eastern District of Michigan on behalf of purchasers of MGIC Investment Corporation ("MGIC" or the "Company") (NYSE:MTG) publicly traded securities during the period February 6, 2007 through February 12, 2008 (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 July 15, 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 Defendant issued false and materially misleading statements that misrepresented and failed to disclose: 1) that the C-BASS acquisition of Fieldstone adversely affected C-BASS liquidity; 2) that the Company's $516 million investment in C-BASS was materially impaired; 3) that the Company's loss reserves were inadequate in light of the worsening housing market and increases in defaults and foreclosures; 4) that the Company's Wall Street bulk transaction business was experiencing substantial losses and no reserves were established to absorb these losses; and 5) that, because of the increases in losses and drain on liquidity, the Company was not adequately capitalized.
On July 30, 2007, after the market closed, MGIC issued a press release announcing that the value of its investment in C-BASS was materially impaired. In response to this announcement, on July 31, 2007 the price of MGIC's common stock declined from $45.44 per share to $38.66.
Then on February 13, 2008, MGIC disclosed that it lost $1.47 billion, or $18.17 a share, in the fourth quarter of 2007. The Company blamed the loss, in part, on a $1.2 billion "premium deficiency reserve" relating to Wall Street bulk transactions. On February 13, 2008, MGIC's stock price closed at $12.61 a share, which represented a nearly $60 a share decline from the Class Period high.
If you purchased MGIC Investment Corporation 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