The PMI Group, Inc. (NYSE: PMI), a Walnut Creek-based holding company that though its subsidiaries provides residential mortgage insurance and credit enhancement products, has announced the preliminary settlement of the securities class action pending against the company in the N.D. of California. The case, originally filed in March 2008, stems from allegations that PMI and certain of its officers and directors made materially misleading statements regarding the company’s business, including its investment in Financial Guaranty Insurance Company, Inc., and that the company materially overstated its financial results.
The settlement is for $31 million and will be paid by the company's insurers. Interestingly, PMI also disclosed the terms of the "blow" provision in the settlement agreement: "Defendants will have the option to terminate the settlement if 4% or more of the class members or shares opt out of the settlement class."Posted by Lyle Roberts at August 5, 2010 6:09 PM | TrackBack