Subprime Mortgage Insurer Faces Shareholder Ire

Law360, New York (April 4, 2008, 12:00 AM EDT) -- Lawyers have filed a putative class action on behalf of shareholders of mortgage insurer PMI Group Inc. over losses stemming from the subprime mortgage market collapse.

The lawsuit, filed Thursday in the U.S. District Court for the Northern District of California, accuses PMI and its executives of insider trading, concealing its exposure to home loan defaults and failing to engage in proper underwriting practices.

PMI offers residential mortgage insurance and is a major investor in insurance holding company Financial Guaranty Insurance Corp., which faced significant exposure...
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