Bernstein Liebhard LLP Appointed Lead Counsel in Securities Class Action Against Security Capital Assurance Ltd.
On July 28, 2008, Bernstein Liebhard LLP (the “Firm”) announced that on April 23, 2008, Judge Deborah A. Batts of the United States District Court for the Southern District of New York appointed the Firm to act as sole lead counsel in In re Security Capital Assurance Ltd. Securities Litigation, Civ. No. 07-CV-11086 (DAB) (S.D.N.Y.), a securities class action against Security Capital Assurance Ltd., its subsidiary XL Insurance, Ltd., several Security Capital officers and directors, and the underwriters of Security Capital’s Secondary Public Offering of June 6, 2007. The Firm represents the Employees’ Retirement System of the State of Rhode Island (“ERSRI”), which the Court appointed as lead plaintiff. The Firm expects to file a Consolidated Amended Complaint by August 6, 2008.
Security Capital (NYSE: SCA) is a Bermuda-domiciled holding company whose operating subsidiaries provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. The current complaint alleges that Security Capital and the other defendants knowingly, or with deliberate recklessness, issued a series of statements between April 23, 2007 and December 10, 2007 that were false and misleading when made because Security Capital: (i) failed to fully disclose the extent of its exposure to Collateralized Debt Obligations and other residential mortgage-backed securities; (ii) failed to adequately reserve for losses as conditions in the housing and credit markets deteriorated; and (iii) improperly valued its credit default swaps.