Mortgage Insurer Hit With Securities Class Action

Law360, New York (February 2, 2009, 12:00 AM EST) -- Shareholders of Triad Guaranty Inc. have filed a proposed class action against the mortgage insurer, alleging that the company misled its investors about poor financial results caused by improper underwriting practices.

In a complaint filed Wednesday in the U.S. District Court for the Middle District of North Carolina, the investors claim Triad and several of its officers and directors violated federal securities laws by not disclosing the company's exposure to losses and defaults related to its book of business for subprime mortgage products that occurred as...
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