NEW YORK, May 30, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announced today that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Wisconsin on behalf of purchasers of MGIC Investment Corporation ("MGIC") (NYSE:MTG) common stock during the period between October 12, 2006 and February 12, 2008 (the "Class Period").
No class has yet been certified in the above action. If you purchased MGIC Investment Corporation stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before July 15, 2008 if you wish to serve as a lead plaintiff. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
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 P.C., 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, during the Class Period, the Company, and certain of its officers and/or directors, violated federal securities laws by withholding material facts from the investing public, including: that the Company's investment in Credit-Based Asset Servicing and Securitization LLC ("C-BASS") was materially impaired from increasing margin calls and rapidly declining value; that the Company was materially overstating its financial results by failing to properly value its investment in C-BASS in violation of Generally Accepted Accounting Principles; and that the Company's loss and default exposure was far greater than previously disclosed.
On February 13, 2008, MGIC announced its fourth quarter 2007 results reporting a net loss for the quarter of $1.47 billion, including an after-tax charge of $33 million related to equity losses incurred by C-BASS. After this announcement, MGIC's stock traded at the lowest price it had traded in over thirteen years.