MBIA, Inc. - Securities Class Action

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Stanford Law School

MBIA, Inc. Summary: According to a press release dated January 11, 2008, the Complaint alleges that during the Class Period, MBIA and the individual defendants, Chief Executive Officer and Chief Financial Officer, violated the federal securities laws by issuing false and misleading press releases, financial statements, filings with the SEC and statements during investor conference calls. The Complaint alleges that, throughout the Class Period, Defendants misrepresented and/or failed to disclose the true extent of MBIA's exposure to losses stemming from MBIA's insurance of residential mortgage-backed securities ("RMBS"), including in particular its exposure to so-called "CDO-squared" securities that are backed by RMBS. This highly risky exposure was belatedly disclosed in a series of public statements beginning on December 19, 2007 and ending on January 9, 2008, the last day of the Class Period. One analyst observed that MBIA had withheld from the public the riskiest parts of its insured portfolio, while others expressed similar dismay at MBIA's failure to apprise investors of these risks in a timely manner.

The Complaint alleges that the Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder and that [individual] Defendants violated Section 20(a) of the Exchange Act.

On July 07, 2008, in a Case Management Order, the Court determined that the Teachers' Retirement System of Oklahoma is the most adequate plaintiff to represent the purchasers of MBIA securities. The Court approved the law firm of Bernstein, Litowitz, Berger, and Grossman as the selection of this qualified counsel as lead for the consolidated action. The master file shall be Case No. 08-CV-264 (KMK).

On October 17, 2008, a consolidated amended complaint was filed by the plaintiffs against the defendants.

On March 11, 2008, several motions to appoint lead plaintiff and to approve the selection of lead counsel were filed.

On March 31, 2010, the Defendants' Motion to Dismiss was granted in part and denied in part. Lead Plaintiff's claims against Dunton and Chaplin are dismissed without prejudice to amendment. Lead Plaintiff's claims against all Defendants regarding alleged misstatements or omissions involving control rights and payment obligations are also dismissed without prejudice. Defendants' Motion to Dismiss all other claims was denied.

On September 21, 2011, a court’s order granted the lead plaintiff’s motion for preliminary approval for the proposed settlement.

On September 30, 2011, the lead plaintiff’s entered a notice of voluntary dismissal pursuant to F.R.C.P. 41(a)(1) of the claims and allegations against the individual defendants.

INDUSTRY CLASSIFICATION:
SIC Code: 6351
Sector: Financial
Industry: Insurance (Prop. & Casualty)

COMPANY/ISSUER NAME:	MBIA, Inc.
COMPANY/ISSUER TICKER:	MBI
COMPANY WEBSITE:	http://www.mbia.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Steven Schmalz, et al. v. MBIA, Inc., et al.

COURT: S.D. New York	DOCKET NUMBER: 08-CV-0264
JUDGE NAME: Hon. Kenneth M. Karas
DATE FILED: 01/11/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 01/30/2007	CLASS PERIOD END: 01/09/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza) One Pennsylvania Plaza, Suite 1910, New York, NY, 10119 (voice) 212.279.5050, (fax) 212.279.3655, JFruchter@FruchterTwersky.com Bernstein Litowitz Berger & Grossmann LLP (New York, NY) 1285 Avenue of the Americas, 33rd Floor, New York, NY, 10019 (voice) 212.554.1400, (fax) 212.554.1444, blbg@blbglaw.com Bronstein, Gewirtz & Grossman, LLC (New York) 60 East 42nd Street - Suite 4600, New York, NY, 10165 (voice) 212.697.6484, (fax) 212.697.7296, info@bgandg.com Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ Murray, Frank & Sailer LLP 275 Madison Ave 34th Flr, New York, NY, 10016 (voice) 212.682.1818, (fax) 212.682.1892, email@murrayfrank.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 5

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint
Type: Complaint		Date on the document: 01/11/2008
US District Court Civil Docket
Type: Docket		Date on the document: 3/28/2008
Case Management Order No. 1
Type: Order of Consolidation		Date on the document: 06/30/2008

REFERENCE COMPLAINT

IN RE MBIA, INC.,

COURT: S.D. New York	DOCKET NUMBER: 08-CV-264
JUDGE NAME:
DATE FILED: 10/17/2008	SOURCE: Docket
CLASS PERIOD START: 07/02/2007	CLASS PERIOD END: 01/09/2008
TYPE OF COMPLAINT: First Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, Schiffrin & Barroway LLP 3 Bala Plaza E, Bala Cynwyd, PA, 19004 (voice) 610.667.7706, (fax) 610.667.7056, info@sbclasslaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint
Type: Complaint		Date on the document: 10/17/2008
Opinion And Order
Type: Order		Date on the document: 03/31/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 03/31/2010
Second Consolidated Amended Class Action Complaint
Type: Complaint		Date on the document: 04/30/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 07/29/2011
Order
Type: Order		Date on the document: 09/21/2011
Order Preliminarily Approving Proposed Settlement and Providing for Notice
Type: Order		Date on the document: 09/21/2011
Notice and Order of Voluntary Dismissal Pursuant to Fed. R. Civ. P. 41 (a)(1)
Type: Notice		Date on the document: 09/30/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/10/2011

OTHER DOCUMENTS
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Case Name and/or Number: Teamsters Local 807 Labor Management Pension Fund, et al. v. MBIA, Inc., et al.
Type: Complaint		Date on the document: 02/25/2008
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: Gary Kosseff, et al. v. MBIA, Inc., et al.
Type: Complaint		Date on the document: 03/06/2008

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