MINNEAPOLIS, May 28, 2008 (Lawfuel) — Charles H. Johnson &
Associates announces that a class action has been commenced in the
United States District Court for the Eastern District of Michigan on
behalf of purchasers of MGIC Investment Corporation (“MGIC” or the
“Company”) (NYSE:MTG) publicly traded securities during the period
February 6, 2007 through February 12, 2008 (the “Class Period”).
If you are a member of the proposed Class, you may move the Court to
serve as a lead plaintiff for the Class on or before July 15, 2008. You
do not need to be a lead plaintiff in order to share in any recovery
that may be obtained.
The Complaint alleges that Defendant issued false and materially
misleading statements that misrepresented and failed to disclose: 1)
that the C-BASS acquisition of Fieldstone adversely affected C-BASS
liquidity; 2) that the Company’s $516 million investment in C-BASS was
materially impaired; 3) that the Company’s loss reserves were
inadequate in light of the worsening housing market and increases in
defaults and foreclosures; 4) that the Company’s Wall Street bulk
transaction business was experiencing substantial losses and no
reserves were established to absorb these losses; and 5) that, because
of the increases in losses and drain on liquidity, the Company was not
On July 30, 2007, after the market closed, MGIC issued a press release
announcing that the value of its investment in C-BASS was materially
impaired. In response to this announcement, on July 31, 2007 the price
of MGIC’s common stock declined from $45.44 per share to $38.66.
Then on February 13, 2008, MGIC disclosed that it lost $1.47 billion,
or $18.17 a share, in the fourth quarter of 2007. The Company blamed
the loss, in part, on a $1.2 billion “premium deficiency reserve”
relating to Wall Street bulk transactions. On February 13, 2008, MGIC’s
stock price closed at $12.61 a share, which represented a nearly $60 a
share decline from the Class Period high.