American Capital Sued After Suspending Dividend Pay

Law360, New York (December 17, 2008, 12:00 AM EST) -- Private-equity firm American Capital Ltd. is facing a proposed securities class action claiming that the company made false statements regarding its dividend payments and hid its exposure to the credit markets from investors.

The proposed class action, filed Monday in the U.S. District Court for the District of Maryland, alleges that American Capital did not warn investors about the disruption the company had suffered during this past fall's credit freeze-up, or about its subsequent losses for the third quarter of 2008.

The complaint also alleges that...
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