| Company: | MBIA, Inc. |
| Ticker Symbol: | NYSE: MBI |
| Class Period: | October 26, 2006 to January 9, 2008 |
| Date Filed: | Feb-25-08 |
| Lead Plaintiff Deadline: | April-11-08 |
| Court: | Southern District, NY |
| Allegations: |
A class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of MBIA, Inc. ("MBIA") (NYSE:MBI) common stock during the period between October 26, 2006 and January 9, 2008 (the "Class Period").
The complaint charges MBIA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MBIA, through its subsidiaries, is a leading financial guarantor and provider of specialized financial services.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results related to its insurance coverage on collateralized debt obligation ("CDO") contracts. As a result of defendants' false statements, MBIA stock traded at artificially inflated prices during the Class Period, reaching an all-time high of $73.31 per share in December 2006.
On January 9, 2008, the Company announced it would incur a total of $737 million in loss and loss adjustment expenses for the fourth quarter of 2007, and had cut the quarterly shareholder dividend from $.34 per share to $.13 per share. On this news, MBIA's stock price declined to as low as $11.11 per share before closing at $13.40 per share on January 9, 2008, on volume of 32 million shares, a two-day decline of 24%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company lacked requisite internal controls to ensure that the Company's underwriting standards and its internal rating system for its CDO contracts were adequate; (b) the Company concealed its exposure to CDOs containing subprime debt; (c) the Company's financial statements were materially misstated due to its failure to properly account for its mark-to-market losses; (d) given the deterioration and the increased volatility in the mortgage market, 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; (e) the Company had far greater exposure to anticipated losses and defaults related to its CDO contracts containing subprime loans than it had previously disclosed; and (f) the Company had far greater exposure to a potential ratings downgrade from one of the credit ratings agencies than it had previously disclosed.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges MBIA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MBIA, through its subsidiaries, is a leading financial guarantor and provider of specialized financial services.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results related to its insurance coverage on collateralized debt obligation ("CDO") contracts. As a result of defendants' false statements, MBIA stock traded at artificially inflated prices during the Class Period, reaching an all-time high of $73.31 per share in December 2006.
On January 9, 2008, the Company announced it would incur a total of $737 million in loss and loss adjustment expenses for the fourth quarter of 2007, and had cut the quarterly shareholder dividend from $.34 per share to $.13 per share. On this news, MBIA's stock price declined to as low as $11.11 per share before closing at $13.40 per share on January 9, 2008, on volume of 32 million shares, a two-day decline of 24%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company lacked requisite internal controls to ensure that the Company's underwriting standards and its internal rating system for its CDO contracts were adequate; (b) the Company concealed its exposure to CDOs containing subprime debt; (c) the Company's financial statements were materially misstated due to its failure to properly account for its mark-to-market losses; (d) given the deterioration and the increased volatility in the mortgage market, 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; (e) the Company had far greater exposure to anticipated losses and defaults related to its CDO contracts containing subprime loans than it had previously disclosed; and (f) the Company had far greater exposure to a potential ratings downgrade from one of the credit ratings agencies than it had previously disclosed.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
