HARTFORD, CT -- (Marketwire) -- 12/23/08 -- The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Maryland on behalf of those who purchased the securities of American Capital Ltd. (NASDAQ: ACAS) ("American Capital" or the "Company") between October 30, 2007 and November 7, 2008, inclusive (the "Class Period").
The Complaint charges that American Capital and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose the following: (i) American Capital had far greater exposure to disruptions in the credit markets than disclosed; (ii) the Company planned to retain capital gains from its investments rather than distributing them to shareholders; (iii) American Capital would have to drastically alter its dividend policy; (iv) the Company lacked adequate internal and financial controls; and (v) that, as a result of the foregoing, the Company's statements about its financial well-being, future business prospects and dividend payments were lacking in any reasonable basis.
During the Class Period, investors were repeatedly assured that dividend payments would continue, and that the Company was in sound financial condition. However, on November 10, 2008, American Capital reported a quarterly loss, suspended dividends, and stated that it would retain capital gains from investments. On this news, the Company's shares fell $5.90 per share, or 42.85%, to close at $7.87 per share.
If you are a member of the class, you may, no later than February 13, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/AmericanCapital/, or contact Izard Nobel LLP toll-free at 800-797-5499, or by e-mail: email@example.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.
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