7th Circ. Nixes Bid To Revive MGIC Stock Fraud Suit

Law360, New York (April 12, 2012, 9:42 PM EDT) -- The Seventh Circuit on Thursday refused to revive a securities class action against mortgage insurer MGIC Investment Corp., saying investors could not prove the company had intentionally misled them about an affiliate's financial health ahead of a subprime crisis-related stock crash.

The appeals ruling affirmed a Wisconsin federal judge's 2010 dismissal of the Fulton County Employees Retirement System's suit — which also targeted two executives of MGIC affiliate Credit-Based Asset Servicing and Securitization LLC — because Fulton hadn't proved the company's intent to hide C-BASS' shaky...
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