The PMI Group, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

The PMI Group, Inc. Summary: According to a press release dated March 12, 2003, the complaint charges PMI and certain of its officers and directors with violations of the Securities Exchange Act of 1934. PMI, through its subsidiaries, provides credit enhancement products designed to promote homeownership and facilitate mortgage transactions in the capital markets in the United States, Australia, New Zealand and the European Union.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, PMI stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $50.21 per share in February 2007. Then, on March 3, 2008, after the market closed, PMI announced its preliminary fourth quarter 2007 financial results and that it would be delayed in filing its Form 10-K for year-end 2007 because it was awaiting financial information from an equity investee, FGIC Corporation (“FGIC”), that was necessary for the Company to complete its financial statements. On this news, PMI’s stock collapsed to $6.43 per share on March 4, 2008, a one-day decline of 5% and an 87% decline from its Class Period high in February 2007.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company’s investment in FGIC was materially impaired as FGIC’s bond insurance arm, Financial Guaranty, had significant exposure to defaults on bonds it insured due to the plunge in value of mortgage debt; (b) the Company was materially overstating its financial results by failing to properly value its investment in FGIC and by failing to write down that investment in a timely fashion in violation of Generally Accepted Accounting Principles (“GAAP”); (c) the Company was not adequately accounting for its loss reserves in violation of GAAP, causing its financial results to be materially misstated; (d) the Company failed to engage in proper underwriting practices for its book of business related to insurance written in 2005 through most of 2007; (e) the Company had far greater exposure to anticipated losses and defaults related to its book of business related to insurance written in 2005 through most of 2007 than it had previously disclosed; (f) given the deterioration and the increased volatility in the subprime market, the Company would be forced to tighten its standards and stop writing insurance policies to certain categories of borrowers which would have a direct material negative impact on its book of business going forward; and (g) given the increased volatility in the subprime market, the Company had no reasonable basis to make projections about its incurred losses or about its new insurance written.

On June 20, 2008, an order removing case from ADR was entered and signed by Judge Illston. At the same time, an order granting the motion to appoint lead plaintiff and its selection of lead counsel was also entered. Lastly, two orders on the continuation of motion to December 12, 2008 and to continue case were entered on August 13, 2008 and August 14, 2008, respectively.

On May 12, 2008, a motion to appoint lead plaintiff and lead counsel was filed.

On July 24, 2009, an amended complaint first amended complaint for violation of the federal securities laws was filed with the court.

On August 30, 2010, a Stipulation of Settlement between the parties to fully, finally, and forever resolve, discharge, and settle the claims associated with this case was submitted to the Court.

On December 16, 2010, on the application of Lead Counsel and Lead Plaintiff for an award of attorneys' fees and expenses was filed with the Court. On the same day, an Order Approving Plan of Allocation of Settlement Proceeds and a Final Judgment and Order of Dismissal with Prejudice were also filed with the Court.

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

COMPANY/ISSUER NAME:	The PMI Group, Inc.
COMPANY/ISSUER TICKER:	PMI
COMPANY WEBSITE:	http://www.pmigroup.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Lori Weinrib, et al. v. The PMI Group, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 08-CV-01405
JUDGE NAME: Hon. Susan Illston
DATE FILED: 03/12/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 11/02/2006	CLASS PERIOD END: 03/03/2008
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abraham, Fruchter & Twersky (New York, 42 Street) 60 East 42 Street, New York, NY, 10021 (voice) 212.687.6655, (fax) , Coughlin Stoia Geller Rudman & Robbins LLP (San Diego) 655 West Broadway, Suite 1900, San Diego, CA, 92101 (voice) 619.231.1058, (fax) 619.231.7423, info@csgrr.com/ Coughlin Stoia Geller Rudman & Robbins LLP (San Francisco) 100 Pine Street, Suite 2600, San Francisco, CA, 94111 (voice) 415.288.4545, (fax) 415.288.4534, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 3/12/2008
Stipulation And Order Requesting A Two-Week Modification Of The Briefing Schedule And Hearing Date
Type: Order		Date on the document: 8/11/2008
Stipulation And Order Requesting A Two-Week Modification Of The Briefing Schedule And Hearing Date
Type: Order		Date on the document: 8/13/2008
Stipulation And Order Requesting A Two-Week Modification Of The Briefing Schedule And Hearing Date
Type: Order		Date on the document: 8/13/2008
Order Granting In Part And Denying In Part Defendants' Motion To Dismiss
Type: Complaint		Date on the document: 07/01/2009

REFERENCE COMPLAINT

In Re The PMI Group, Inc. Securities Litigation

COURT: N.D. California	DOCKET NUMBER: 08-CV-01405
JUDGE NAME:
DATE FILED: 09/04/2008	SOURCE: Docket
CLASS PERIOD START: 11/02/2006	CLASS PERIOD END: 03/03/2008
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
The Rosen Law Firm, P.A. 333 South Grand Avenue, 25th Floor, Los Angeles, CA, 90071 (voice) 213.785.2610, (fax) 213.226-4684, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Complaint For Violation Of The Federal Securities Laws
Type: Complaint		Date on the document: 09/04/2008
Notice Of Motion And Motion To Dismiss Consolidated Complaint For Violation Of The Federal Securities Laws; Memorandum Of Points And Authorities In Support
Type: Motion		Date on the document: 10/14/2008
Reply Memorandum Of Points And Authorities In Support Of Motion To Dismiss Consolidated Complaint For Violation Of The Federal Securities Laws
Type: Memorandum		Date on the document: 11/21/2008
First Amended Complaint For Violation Of The Federal Securities Laws
Type: Complaint		Date on the document: 07/24/2009
Notice of Motion and Motion to Dismiss First Amended Complaint for Violation of the Federal Securities Laws; Memorandum of Points and Authorities in Support
Type: Motion		Date on the document: 09/02/2009
US District Court Civil Docket
Type: Docket		Date on the document: 09/02/2009
Reply Memorandum Of Points And Authorities In Support Of Motion To Dismiss First Amended Complaint For Violation Of The Federal Securities Laws
Type: Memorandum		Date on the document: 10/30/2009
Declaration By Bjorn I. Steinholt, CFA
Type: Declaration		Date on the document: 05/05/2010
Declaration Of Daniel S. Drosman In Support Of Plaintiffs' Motion For Class Certification
Type: Declaration		Date on the document: 05/06/2010
Declaration Of Malcolm J. Auble In Support Of Plaintiffs' Motion For Class Certification
Type: Declaration		Date on the document: 05/06/2010
Plaintiffs' Notice Of Motion And Motion For Class Certification; Memorandum Of Points And Authorities In Support Of Motion For Class Certification
Type: Memorandum		Date on the document: 05/06/2010
Defendants’ Statement Of Nonopposition To Plaintiffs’ Motion For Class Certification
Type: Other		Date on the document: 06/17/2010
Lead Plaintiff's Notice Of Motion And Motion For Preliminary Approval of Settlement And Certification Of A Settlement Class, And Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 08/31/2010
Stipulation Of Settlement
Type: Settlement		Date on the document: 08/31/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 08/31/2010
Notice Of Pendency And Proposed Settlement Of Class Action - Exhibit A-1
Type: Notice		Date on the document: 09/07/2010
[Proposed] Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 09/07/2010
Summary Notice - Exhibit A-3
Type: Notice		Date on the document: 09/07/2010
Declaration Of Daniel S. Drosman In Support Of Lead Plaintiff's Motion For (1) Final Approval Of Settlement; (2) Approval Of The Plan Of Allocation Of Settlement Proceeds; And (3) Lead Counsel's Application For Attorneys' Fees And Expenses And Lead Plaintiff's Expenses
Type: Declaration		Date on the document: 10/08/2010
Declaration Of Keith F. Park Filed On Behalf Of Robbins Geller Fudman & Dowd LLP In Support Of Application For Award Of Attorneys' Fees And Expenses
Type: Declaration		Date on the document: 10/08/2010
Lead Plaintiff's Notice Of Motion And Motion For An Award Of Attorneys' Fees And Expenses And Lead Plaintiff's Expenses And Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 10/08/2010
Notice Of Motion And Motion For Final Approval Of Settlement And The Plan Of Allocation Of Settlement Proceeds And Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 10/08/2010
Lead Plaintiff's Supplemental Memorandum In Further Support Of Final Approval Of Settlement, Plan Of Allocation Of Settlement Proceeds; And An Award Of Attorneys' Fees And Expenses And Lead Plaintiff's Expenses
Type: Memorandum		Date on the document: 11/11/2010
[Proposed] Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 11/11/2010
[Proposed] Order Approving Plan Of Allocation Of Settlement Proceeds
Type: Order		Date on the document: 11/11/2010
[Proposed] Order Awarding Lead Counsel's Attorneys' Fees And Expenses And Lead Plaintiff's Expenses
Type: Order Approving AF&E		Date on the document: 11/11/2010
[Proposed] Final Judgment And Order Of Dismissal With Prejudice
Type: Other		Date on the document: 12/16/2010
[Proposed] Order Approving Plan Of Allocation Of Settlement Proceeds
Type: Other		Date on the document: 12/16/2010
[Proposed] Order Awarding Lead Counsel's Attorneys' Fees And Expenses And Lead Plaintiff's Expenses
Type: Other		Date on the document: 12/16/2010
[Proposed] Order Approving Plan Of Allocation Of Settlement Proceeds
Type: Order		Date on the document: 12/20/2010
[Proposed] Order Awarding Lead Counsel's Attorneys' Fees And Expenses And Lead Plaintiff's Expenses
Type: Order Approving AF&E		Date on the document: 12/20/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 12/20/2010

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: Kimberly D. Holt, et al. v. The PMI Group, Inc., et al.
Type: Complaint		Date on the document: 4/2/2008

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