Class Action Suit Filed Against Ambac
SAN JUAN – Various law firms have been issuing releases announcing that a class action lawsuit has begun in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Ambac Financial Group Inc. securities between Nov. 13, 2013 and June 30, 2015.
According to the complaint, Ambac made materially false and misleading statements and omitted material facts concerning the company’s losses and loss exposure on its public finance bond portfolio, risk management and internal controls. The complaint further alleges that these misstatements allowed the stock to trade at artificially inflated prices throughout the class period.
Following the June 29, 2015, revelation that Puerto Rico would likely default on upcoming interest payments, and that as a result, Ambac was potentially liable for up to $2.5 billion worth of commonwealth debt the company insured, Ambac stock fell approximately 29%, causing investors substantial losses, according to at least three law firm releases looking to represent Ambac shareholders.
“Then on May 11, 2016, Ambac admitted in an SEC filing that management had identified a material weakness in its internal control over financial reporting,” one of the “investor alert” releases reads.
They also add that the lead plaintiff deadline, a 60-day period after a securities class action has been filed within which applications must be filed, was set for Aug. 29.