Shareholder Class Action Filed Against Security Capital Assurance Ltd. by The Law Firm of Schiffrin Barroway Topaz & Kessler, LL

RADNOR, Pa., Jan. 8  /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of securities of Security Capital Assurance Ltd.  (NYSE:SCA) ("Security Capital" or the "Company")  from April 23, 2007 through December 10, 2007, including those who purchased shares in the Company's Secondary Public Offering ("SPO" or "Offering") of June 6, 2007, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .

The Complaint charges Security Capital and certain of its officers and directors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. Security Capital is a Bermuda-domiciled holding company whose operating subsidiaries provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally.  More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:  (1) that the Company failed to fully disclose the extent of its exposure to collateralized debt obligations ("CDOs") and other residential mortgage-backed securities ("RMBS"); (2) that the Company failed to adequately reserve for losses as conditions in the housing and credit markets deteriorated; and (3) that the Company improperly valued its credit default swaps.

On July 23, 2007, Security Capital shocked investors when it reported its second quarter 2007 financial and operational results.  For the quarter, the Company reported net income of $25.9 million, or $0.40 per share, compared to $36.4 million, or $0.79 per share, reported in the second quarter of 2006. The quarterly decline in net income was principally due to a decline in refunding activity, and a significant increase in losses on derivative instruments.  On this news, the Company's shares declined $4.38 per share, or 15.19 percent, to close on July 24, 2007 at $24.26 per share, on unusually heavy trading volume.

Then on October 25, 2007, the Company reported its third quarter 2007 financial and operational results.  For the quarter, the Company reported a net loss of $89.9 million, or $1.40 per share, compared to net income of $28.4 million, or $0.49 per share, reported in the third quarter of 2006.  This quarterly loss was due to a $143 million mark-to-market loss.  On this news, the Company's shares declined an additional $1.20 per share, or 8.3 percent, to close on October 25, 2007 at $13.25 per share, on heavy trading volume.

Then on December 11, 2007, Fortune published an article suggesting that Security Capital may be facing ratings downgrades.  On this news, the Company's shares declined an additional $1.23 per share, or 15 percent, to close on December 11, 2007 at $6.97 per share, on unusually heavy trading volume.  The following day, Fitch Ratings put Security Capital on ratings watch "negative," which caused the Company's shares to decline an additional $1.52 per share, or 21.8 percent, to close on December 12, 2007 at $5.45 per share.  Finally, on December 13, 2007, the Company issued a press release responding to the Fitch Ratings report in an attempt to reassure investors of its solvency.  On this news, the Company's shares declined an additional $1.22 per share, or 22.4 percent, to close on December 13, 2007 at $4.23 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country.  Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/

If you are a member of the class described above, you may, not later than February 5, 2008, move the Court to serve as lead plaintiff of the class, if you so choose.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

  CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
           Darren J. Check, Esq.
           Richard A. Maniskas, Esq.
           280 King of Prussia Road
           Radnor, PA 19087
           1-888-299-7706 (toll free) or 1-610-667-7706
           Or by e-mail at 

DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP



CONTACT:  Darren J. Check, Esq., or Richard A. Maniskas, Esq., both of

Schiffrin Barroway Topaz & Kessler, LLP, [phone], [phone],

 



Web site:  http://www.sbtklaw.com/ 

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