Security Capital Assurance Case 12/06/2007

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Company Name(s): 
Security Capital Assurance
Case Name: 
Security Capital Assurance Case 12/06/2007
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: SCA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/06/2007
Class Period Begin: 
06/06/2007
Class Period End: 
06/06/2007
Summary: 

According to a law firm press release, on December 7, 2007 a class action wason behalf of all persons who purchased the common stock of Security Capital Assurance, Ltd.
The complaint charges Security Capital and certain of its officers and directors with violations of the Securities Act of 1933. 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.
On or about May 25, 2007, Security Capital filed a Form S-1/A Registration Statement with the Securities and Exchange Commission for the Secondary Offering. On or about June 6, 2007, the Prospectus with respect to the Secondary Offering, which forms part of the Registration Statement, became effective and more than 9.6 million shares of Security Capital common stock were sold to the public at $31.00 per share, thereby raising more than $300 million.
The complaint alleges that the Registration Statement and Prospectus contained untrue statements of material facts because they failed to disclose that: (i) the Company was materially exposed to extremely risky structured financial credit derivatives; and (ii) the Company was materially exposed to residential mortgage-backed securities relating to sub-prime real estate mortgages.