The original class action has been commenced on behalf of all persons who purchased the common stock of ACA Capital Holdings, Inc. pursuant and/or traceable to the Company’s initial public offering.
The complaint charges ACA Capital and certain of its officers and directors with violations of the Securities Act of 1933. ACA Capital is a holding company that provides financial guaranty insurance products to participants in the global credit derivative, structured finance capital, and municipal finance capital markets.
On or about November 9, 2006, ACA Capital priced its IPO of 6,875,000 shares of newly issued common stock and 23,541 shares of existing common stock at $13 per share, generating gross proceeds of $89.4 million. The Registration Statement for the IPO described positively ACA Capital’s business and the Company’s collateralized debt obligation (“CDO”) asset management business. The complaint alleges that the Registration Statement for the IPO contained inaccurate statements of material fact because it failed to disclose that the Company’s CDO assets were materially impaired and overvalued.
On August 11, 2008, the Court granted the motion to consolidate the two related actions and further granted the motion to appoint lead plaintiff and lead plaintiff's selection of lead counsel. Guido Bergamini is the lead plaintiff and Coughlin Stoia Geller Rudman & Robbins LLP and and Abraham Fruchter & Twersky are lead counsels in this consolidated action. On November 14, 2008, the lead plaintiff filed a Consolidated Amended Class Action Complaint. On January 27, 2009, the defendants filed a motion to dismiss the Consolidated Amended Class Action Complaint. On January 15, 2010, the Court entered Memorandum and Opinion #98455. According to the Opinion, the Defendants' motion is granted and the Complaint is dismissed with prejudice.