NEW YORK, March 17 /PRNewswire/ -- Dreier LLP (http://www.dreierllp.com)
announces that a class action lawsuit was commenced in the U.S. District Court
for the Northern District of California on behalf of investors who purchased
The PMI Group, Inc. ("PMI" or the "Company") (NYSE: PMI) common stock during
the period from November 2, 2006 through March 3, 2008, inclusive (the "Class
Period"). The Complaint alleges that PMI and certain of the Company's
officers and directors (collectively, the "Defendants") violated the
Securities Exchange Act of 1934.
If you purchased PMI common stock during the Class Period, you may be a
member of the proposed Class. You must move the Court on or before May 12,
2008 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet
certain legal requirements. If you purchased PMI common stock and want to
discuss your legal rights, you may contact Bruce D. Bernstein
(classlaw@dreierllp.com) of Dreier LLP at 800-952-8897. Class members may
retain counsel of their choice and move the Court to serve as a lead
plaintiff, or may choose to do nothing and remain absent class members.
PMI, through its subsidiaries, provides credit enhancement products
designed to promote homeownership and facilitate mortgage transactions in the
capital markets in the United States, Australia, New Zealand and the European
Union.
The Complaint alleges that during the Class Period, Defendants misled
investors by making materially false and misleading statements concerning
PMI's business and financial results. Among other things, the Complaint
alleges that Defendants failed to disclose that: (i) due to the drop-off in
value of its mortgage debt, PMI's investment in FGIC Corporation ("FGIC"), was
materially impaired as FGIC's bond insurance arm, Financial Guaranty, had
significant exposure to defaults on bonds that it insured; (ii) in violation
of Generally Accepted Accounting Principles ("GAAP"), PMI materially
overstated its financial results by materially inflating the value of its
investment in FGIC and by failing to write down that investment in a timely
fashion; (iii) PMI was not adequately accounting for its loss reserves in
violation of GAAP, causing its financial results to be materially misstated;
(iv) PMI had not sufficiently disclosed its overexposure to anticipated losses
and defaults related to its book of business related to insurance written in
2005 through most of 2007; and (v) PMI had no reasonable basis to make
projections about its losses or about new insurance written due to the
increased volatility in the subprime market.
On March 3, 2008, after the market closed, PMI announced its preliminary
fourth quarter 2007 financial results and that it would be delayed in filing
its Form 10-K for year-end 2007 because it was awaiting financial information
from FGIC, which was necessary for the Company to complete its financial
statements. As a direct and proximate result of this news, on March 4 the
price of PMI stock declined $0.35 per share to close at $6.43 per share, a one
day decline of 5%, on extremely high trading volume.
Dreier LLP's Class Action Litigation Group has vast experience
representing domestic and foreign institutional and individual investors in
securities and other class actions throughout the country. The partners who
head Dreier LLP's Class Action Litigation Group have successfully prosecuted
securities fraud class actions in a wide variety of industries and have played
a significant role in cases that have resulted in some of the largest
securities class action settlements. Prior results do not guarantee a similar
outcome. As of the date of this Notice, Dreier LLP has not filed a Complaint
against PMI.
Background on Dreier LLP
Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and
innovative alternative to traditional "large-firm" lawyering. Dreier LLP
represents a wide range of institutional, entrepreneurial and individual
clients in diverse sectors of financial, industrial and service-oriented
markets. The firm's principal practices are commercial litigation, class
action litigation, real estate, bankruptcy and corporate reorganization,
employment, corporate and securities, entertainment, intellectual property,
matrimonial and tax. Dreier LLP's Los Angeles affiliate, Dreier Stein Kahan
Browne Woods George LLP, has its principal practice in entertainment and
commercial litigation and corporate transactions. The firm's New York
affiliate Schlesinger Gannon & Lazetera LLP has an extensive practice in the
area of trusts and estates law. Pitta & Dreier LLP is an affiliate which
specializes in labor law, and Pitta, Bishop, Del Giorno & Dreier LLP
specializes in government relations. In the 12 years since its founding,
Dreier LLP, with its affiliate members, has grown to more than 200 attorneys,
with its principal office at 499 Park Avenue in Manhattan, and additional
offices in Los Angeles and Santa Monica, California; Albany, New York; and
Stamford, Connecticut.
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