Lawsuit Overview
October 3, 2012 - The court denied the lead plaintiff's motion for relief from judgment.
April 12, 2012 - The U.S. Court of Appeals for the Seventh Circuit affirmed the district court's decision.
January 6, 2011 - The lead plaintiff filed a notice of appeal.
December 8, 2010 - The court denied the lead plaintiff's motion to amend the complaint and ordered the case closed.
March 18, 2010 - The lead plaintiff filed a motion to amend the complaint.
February 18, 2010 - The court granted the defendants' motions to dismiss and allowed plaintiff to move for leave to file an amended complaint.
August 14, 2009 - The defendants filed motions to dismiss.
June 22, 2009 - The lead plaintiff filed an consolidated complaint on behalf of investors who purchased MGIC Investment Corporation (NYSE: MTG) common shares between October 12, 2006 and February 12, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 12, 2006 and February 12, 2008.
March 27, 2009 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.
March 10, 2009 - The court ordered all cases transferred to the U.S. District Court for Eastern District of Wisconsin.
October 28, 2008 - An additional investor filed a complaint in the U.S. District Court for the Eastern District of Wisconsin on behalf of investors who purchased MGIC Investment Corporation (NYSE: MTG) common shares between October 12, 2006 and February 12, 2008.
June 9, 2008 - Another investor filed a complaint in the U.S. District Court for the Eastern District of Wisconsin on behalf of investors who purchased MGIC Investment Corporation (NYSE: MTG) common shares between February 6, 2007 and February 12, 2008.
May 22, 2008 - Another investor filed a complaint in the U.S. District Court for the Eastern District of Wisconsin on behalf of investors who purchased MGIC Investment Corporation (NYSE: MTG) common shares between October 12, 2006 and February 12, 2008.
May 12, 2008 - An investor in shares of MGIC Investment Corporation (NYSE: MTG) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against MGIC Investment Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 6, 2007 and February 12, 2008.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically the complaint alleges that defendant issued false and materially misleading statements that misrepresented and failed to disclose: (a) that
the C-BASS acquisition of Fieldstone adversely affected C-BASS liquidity; (b) that MGIC Investment Corporation's $516 million investment in C-BASS was materially impaired; (c) that MGIC Investment Corporation's loss reserves were inadequate in light of the worsening housing market and increases in defaults and foreclosures; (d) that MGIC Investment Corporation's Wall Street bulk transaction business was experiencing substantial losses and no reserves were established to absorb these losses; and (e) that, because of the increases in losses and drain on liquidity, MGIC Investment Corporation was not adequately capitalized.
On July 30, 2007, after the market closed, MGIC Investment Corporation 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 Investment Corporation's common stock (NYSE: MTG) declined from $45.44 per share to $38.66, on extremely heavy trading volume.
Then on February 13, 2008, MGIC disclosed that it lost $1.47 billion, or $18.17 a share, in the fourth quarter of 2007. MGIC Investment Corporation blamed the loss,
in part, on a $1.2 billion premium deficiency reserve relating to Wall Street bulk transactions.
On February 13, 2008, MGIC Investment Corporation's stock price closed at $12.61 a share, which represented a nearly $60 a share decline from the high reached on February 6, 2007.