NEW YORK, Dec. 18 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") has filed a class action lawsuit in the United States District Court for Southern District of New York on behalf of all persons and entities who purchased the common stock of Security Capital Assurance, Ltd. ("Security Capital" or the "Company") pursuant to the Company's secondary stock offering on June 6, 2007 of more than 9.6 million shares at $31.00 per share. Security Capital, through its subsidiaries, provides financial guaranty insurance, reinsurance, and other credit enhancement products to the public finance and structured finance markets in the United States and internationally.
The deadline to file a motion seeking to be appointed lead plaintiff is February 5, 2008. If you purchased Security Capital's common stock pursuant to the secondary offering, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.
If you wish to discuss this action or have any questions concerning your rights and interests with respect to this securities litigation matter, please contact Zwerling Schachter (Kevin McGee, Esq. or Donald Lanier) at 1-800-721-3900 or by e-mail at
The complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the Registration Statement and Prospectus filed with the Securities & Exchange Commission in connection with the secondary offering contained untrue statements of material facts because they failed to disclose that: a substantial portion of the Company's credit portfolio related to sub-prime residential mortgage backed securities ("RMBS") and collateralized debt obligations ("CDOs") that had declined substantially in value; 2) the Company's net loss reserves were inadequate in light of the Company's deteriorating credit portfolio; 3) the Company's credit default swaps were not fairly valued at the time of the secondary offering; and 4) as a result of the Company's imprudent underwriting, inadequate loss reserves and overvaluation of its credit default swaps, the Company's AAA credit rating was at risk of being downgraded. As a result of these omissions, persons who purchased the Company's common stock pursuant to the secondary offering paid materially more than what the shares were worth.
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Uniondale, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
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