| Company: | Triad Guaranty Inc. |
| Ticker Symbol: | TGIC |
| Class Period: | Oct-26-06 to Nov-10-08 |
| Date Filed: | Mar-4-09 |
| Lead Plaintiff Deadline: | May-3-09 |
| Court: | Middle District of North Carolina |
| Allegations: | |
The complaint alleges that, during the Class Period, defendants made false and misleading statements to the market about the Company's business and financial condition. For example, defendants failed to disclose that: (i) the Company was not adequately accounting for its loss reserves in violation of Generally Accepted Accounting Principles, causing its financial results to be materially misstated; (ii) the Company failed to engage in proper underwriting practices for its book of business related to insurance written in 2006 and 2007, including the insurance related to its Alt-A and pay-option adjustable rate mortgage products; (iii) the Company had far greater exposure to anticipated losses and defaults related to its book of business related to insurance written in 2006 and 2007, including its Alt-A and pay-option ARM portfolios, than it had previously disclosed; (iv) the Company lacked effective internal controls to detect fraud and misrepresentations in the underwriting process; and (v) the Company failed to disclose the true risks associated with its ability to continue to write new business and, given rating downgrades and capital limitations, the Company would be forced to liquidate its Canadian subsidiary and stop writing new insurance policies and transition the business to run-off. As a result of defendants' false statements, Triad stock traded at artificially inflated prices during the Class Period reaching as high as $58.45 per share in January 2007.
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 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. 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 to close at $0.70 per share on November 11, 2008.
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.
