INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST HCC INSURANCE HOLDINGS, INC.-HCC
New York, NY March 27, 2007 - Murray, Frank & Sailer LLP has filed a class action on behalf of shareholders who purchased or otherwise acquired the securities of HCC Insurance Holdings, Inc (“HCC” or the “Company”) (NYSE: HCC) between May 3, 2005 through November 17, 2006 (the “Class Period”).
Join the Case
The complaint alleges that Defendants violated Sections 10(b), 20(a) and 14(a) of the Securities Exchange Act of 1934 and Rule 10b-5, and Rule 14(a)-1 to 14(a)-9 promulgated thereunder. Specifically, the complaint alleges that Defendants: (1) backdated stock option grants, such that the description of the Company's granting practices in the Company's financial reports were untrue; (2) the Company's reported earnings and shareholders' equity was artificially inflated in each of its financial reports during the Class Period due to understated compensation expenses; and, (3) the Company's financial reports were not presented in accordance with GAAP and were artificially inflated and did not accurately present the Company's actual performance.
On November 16, 2006, after the market closed, HCC announced that it had backdated option grant dates from 1997 through 2006 and that it would restate financial reports previously filed with the SEC and disseminated to investors in press releases. In response to this announcement, the price of HCC stock dropped materially falling from a close of $31.64 on November 17, 2006, to a low of $28.81 on November 20, 2006 (the next trading day), representing a one-day share price decline of 9% on volume of 6.6 million shares.
If you are a member of the class, you may, no later than May 7, 2007, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You may visit our website at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]