Murray, Frank & Sailer LLP Announces Investigation of Ambac Financial Group, Inc. on Behalf of Purchasers of Directly-Issued Subordinated Capital Securities (DISCS)
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NEW YORK--(BUSINESS WIRE)--
To Purchasers of Ambac Financial Group, Inc. ("Ambac" or the "Company") (NYSE: ABK) Directly-Issued Subordinated Capital Securities issued 2/7/07 and due 2/7/87 ("DISCS"). Murray, Frank & Sailer LLP is investigating a class action on behalf of shareholders who purchased or otherwise acquired DISCS from February 7, 2007 (the IPO) through January 15, 2008, inclusive (the "Class Period"), seeking remedies under the Securities Act of 1933 or Securities Exchange Act of 1934.
A class action has been commenced in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired Ambac Financial Group common stock (NYSE: ABK) from October 19, 2005 through January 15, 2008, inclusive. Lead Plaintiff has been appointed in the litigation, but no representatives of purchasers of DISCS have stepped forward. If you purchased DISCS during the Class Period and would like to represent a class of purchasers of those securities in this litigation, please contact Murray, Frank & Sailer LLP at ABK@murrayfrank.com or by telephone at (212) 682-1818 or toll-free at (800) 497-8076.
The Complaint filed in the common stock class action alleges that during the Class Period the Company issued materially false and misleading statements about Ambac's business and financial results and materially misrepresented, inter alia, its exposure to collateralized debt obligations ("CDOs") and subprime mortgages. It is also alleged that defendants failed to mark down the Company's CDO and other mortgage-backed security assets in a timely manner, resulting in the Company issuing materially false and misleading financial statements and results. Moreover, it is alleged that certain executives of the Company reaped millions of dollars in proceeds from the sale of Ambac shares during the Class Period at artificially inflated prices.
It is also alleged that on January 16, 2008, Ambac announced its preliminary fourth quarter 2007 results which included an estimated net loss of $3.4 billion for the fourth quarter, including an approximate $1.1 billion loss that was attributed to CDOs backed by subprime mortgages. As a result, it is alleged the price of Ambac stock plummeted on January 16, 2008 to close at $12.97 per share, a 38% decline from the prior day close. On the same day, DISCS dropped $12 per DISCS, or 18.75% from the previous day close and declined further on January 17, 2008 to close at $39.125, with a total two-day drop of 38.86%.
If you would like to discuss this action, this announcement, or your rights and interests, please contact us.
Source: Murray, Frank & Sailer LLP
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