San Diego, Sept. 23, 2011 (Shareholders Foundation) -- An investor in American Capital, Ltd. ( American Capital or the Company ) (NASDAQ: ACAS) filed a lawsuit against certain directors and officers of American Capital Ltd. over alleged breaches of fiduciary duties.
According to the complaint the plaintiff alleges that, among other allegations, certain of American Capital’s directors and officers repeatedly misrepresented American Capital’s financial outlook and misleadingly projected dividend distributions

The lawsuit against certain directors and officers of American Capital Ltd. was filed by current long term ACAS investors and follows a lawsuit filed in December 2008 on behalf of purchasers of securities of American Capital Ltd. who only purchased their ACAS shares between October 30, 2007 and November 7, 2008. According to that complaint filed the plaintiff alleged that American Capital Ltd. (NASDAQ:ACAS) violated the Securities Exchange Act of 1934 by failing to disclose and misrepresented the material adverse facts which were known to defendants or recklessly disregarded by them and throughout above stated period and most of the company’s history, investors were lured to invest in American Capital’s stock due to its large and dependable dividend payments and investors were repeatedly assured that such dividend payments would continue. But then, so the lawsuit, on November 10, 2008, American Capital shocked investors when it reported a quarterly loss, suspended dividends, and stated that it would retain capital gains from investments as opposed to distributing them to shareholders as previously stated.

Even though shares of American Capital Ltd. (NASDAQ: ACAS) increased from as low as $0.585 per share in March 09 to over $10 in May 2011, NASDAQ ACAS stocks traded during 2007 as high as $49.63, respectively during 2008 as high as $36.42 per share and traded recently under $8 per share.