LOS ANGELES, July 27, 2007 LAWFUEL – The Law Newswire — Notice is hereby given that Glancy Binkow & Goldberg LLP has filed the Class Action lawsuit currently pending in the United States District Court for the Southern District of Florida on behalf of a class (the “Class”) consisting of all persons or entities who purchased or otherwise acquired the common stock of 21st Century Holding Company (“21st Century” or the
“Company”)(Nasdaq:TCHC) between October 3, 2006 and May 3, 2007, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges 21st Century and certain of the Company’s executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b 5 promulgated thereunder. Among other things, plaintiff claims that defendants’
material omissions and dissemination of materially false and misleading statements concerning the Company’s business and prospects caused 21st Century’s stock price to become artificially inflated, inflicting damages on investors. 21st Century is an insurance holding company that engages in insurance underwriting, distribution and claims processing, primarily in the United States. The Company is authorized through its wholly owned subsidiaries to underwrite homeowners’ property and casualty insurance, commercial general liability insurance, and personal automobile insurance in various states with various lines of authority.
The Complaint alleges that during the Class Period defendants reported the Company’s financial results in a positive manner and issued positive financial guidance touting the Company’s purportedly strong financial performance and prospects. Defendants, however, failed to fully disclose, and their assertions misleadingly failed to take into account, (i) the negative effect on the Company’s financial performance and prospects resulting from their decision to increase loss reserves through the hiring of new actuaries; (ii) the increased competition from the state-backed Citizens Property Insurance Corp.; and (iii) the impact of increased reinsurance rates, and as a result of the foregoing, during the Class Period Defendants made false and misleading statements of present fact and financial guidance which misrepresented 21st Century’s business and financial performance.
On May 3, 2007, 21st Century shocked the market when it announced disappointing financial results for the first quarter of 2007 and substantially lowered its previously issued guidance for 2007 from $4.50 per share to $2.00 to $2.50 per share. The May 3, 2007 press release also reported that prepaid reinsurance premiums had grown from
$8,671,572 in the first quarter of 2006 to $16,972,078 in the first quarter of 2007. Loss and loss adjustment expenses had increased from
$7,568,843 to $14,102,655 during that same period. In a conference call that day, the Company’s CFO attributed the disappointing quarterly results, which were below market expectations, to the increased cost of reinsurance.
This negative news caused the Company’s share price to plunge the next day by $8.94 — a drop of more than 44% from the previous day’s closing price of $19.11, to close on May 4, 2007, at $11.05 per share on extremely heavy volume of over two million shares traded.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than September 25, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at
(310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.
