| Company: | Security Capital Assurance, Ltd. |
| Ticker Symbol: | NYSE: SCA |
| Stock Offering: | June 6, 2007 |
| Date Filed: | Dec-18-07 |
| Lead Plaintiff Deadline: | Feb-05-08 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for Southern District of New York on behalf of all persons and entities who purchased the common stock of Security Capital Assurance, Ltd. ("Security Capital" or the "Company") pursuant to the Company's secondary stock offering on June 6, 2007 of more than 9.6 million shares at $31.00 per share. Security Capital, through its subsidiaries, provides financial guaranty insurance, reinsurance, and other credit enhancement products to the public finance and structured finance markets in the United States and internationally.
The complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the Registration Statement and Prospectus filed with the Securities & Exchange Commission in connection with the secondary offering contained untrue statements of material facts because they failed to disclose that: a substantial portion of the Company's credit portfolio related to sub-prime residential mortgage backed securities ("RMBS") and collateralized debt obligations ("CDOs") that had declined substantially in value; 2) the Company's net loss reserves were inadequate in light of the Company's deteriorating credit portfolio; 3) the Company's credit default swaps were not fairly valued at the time of the secondary offering; and 4) as a result of the Company's imprudent underwriting, inadequate loss reserves and overvaluation of its credit default swaps, the Company's AAA credit rating was at risk of being downgraded. As a result of these omissions, persons who purchased the Company's common stock pursuant to the secondary offering paid materially more than what the shares were worth.
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 alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the Registration Statement and Prospectus filed with the Securities & Exchange Commission in connection with the secondary offering contained untrue statements of material facts because they failed to disclose that: a substantial portion of the Company's credit portfolio related to sub-prime residential mortgage backed securities ("RMBS") and collateralized debt obligations ("CDOs") that had declined substantially in value; 2) the Company's net loss reserves were inadequate in light of the Company's deteriorating credit portfolio; 3) the Company's credit default swaps were not fairly valued at the time of the secondary offering; and 4) as a result of the Company's imprudent underwriting, inadequate loss reserves and overvaluation of its credit default swaps, the Company's AAA credit rating was at risk of being downgraded. As a result of these omissions, persons who purchased the Company's common stock pursuant to the secondary offering paid materially more than what the shares were worth.
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.
