NEW YORK, Jan. 30, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Middle District of North Carolina on behalf of purchasers of Triad Guaranty Inc. ("Triad" or the "Company") (Nasdaq:TGIC) common stock during the period between October 26, 2006 and November 10, 2008 (the "Class Period") for violations of the federal securities laws.
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 Triad common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by March 30, 2009. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
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 Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The complaint charges Triad and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Triad, through its subsidiary, Triad Guaranty Insurance Corporation, provides private mortgage insurance products to residential mortgage lenders and investors in the United States.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of defendants' false statements, Triad stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $58.45 per share in January 2007. However, beginning in late August 2007 and continuing throughout 2008, Triad began to acknowledge serious issues surrounding its exposure to anticipated losses and defaults related to its book of business for its Alt-A and pay-option adjustable rate mortgage ("ARM") products written in 2006 and 2007 due to a failure to engage in proper underwriting practices, resulting in a decline in Triad's stock price. Then, on November 10, 2008, Triad issued its financial results for the third quarter of 2008, reporting a net loss for the quarter ended September 30, 2008 of $160.1 million. On this news, Triad's stock price dropped $0.11 per share to close at $0.70 per share on November 11, 2008.