Triad Securities Litigation
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Welcome to the Triad Securities Litigation Website

This website has been established to provide general information related to the proposed settlement of the Triad Guaranty Inc. (“Triad”) Securities Litigation. The capitalized terms used on this website, and not defined herein, shall have the same meanings ascribed to them in the Stipulation of Settlement dated October 5, 2015 (the “Stipulation”), which can be found and downloaded by clicking on the Case Documents tab above. 

This is a securities class action litigation currently pending before Senior United States District Judge N. Carlton Tilley, Jr. in the United States District Court for the Middle District of North Carolina (the “Court”), and the case is known as Phillips v. Triad Guaranty Inc., et al., No. 1:09-cv-00071-NCT-JLW.

This Litigation alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) by misrepresenting and omitting material facts about Triad’s business and financial results. Specifically, Lead Plaintiff alleges that Triad under-priced certain of its insurance products known as Modified Pool Insurance by knowingly or recklessly under appreciating the risk involved in the transactions. Lead Plaintiff alleges that when Defendants disclosed the truth about Triad’s financial results, Class Members suffered damages as a result of the decline in the price of Triad common stock. 

Defendants deny all of Lead Plaintiff’s allegations, including that they made any material misrepresentations or omissions or that the Lead Plaintiff or the Class Members were harmed by the conduct alleged in the Second Amended Complaint. Defendants further deny that they did anything wrong and maintain that their conduct was at all times proper and in compliance with applicable provisions of law.

The Class is defined as  all Persons who purchased Triad common stock between October 26, 2006 and April 1, 2008, inclusive  (the “Class Period”).

Defendants have agreed to pay or cause their insurers to pay $1,600,000 in cash (the “Settlement Amount”). The Settlement Amount, plus interest earned from the date it is established (the “Settlement Fund”), less costs, fees, and expenses (the “Net Settlement Fund”), will be divided among all eligible Class Members who send in valid Proofs of Claim

The Court appointed the law firm of Robbins Geller Rudman & Dowd LLP to represent you and other Class Members. These lawyers are called Lead Counsel. These lawyers will apply to the Court for payment from the Settlement Fund; you have not been and will not otherwise be charged for their work. If you want to be represented by your own lawyer, you may hire one at your own expense.

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice of Proposed Settlement of Class Action (the "Notice) and the Stipulation, both of which can be found and downloaded from this website. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A CLAIM FORM If you are a Class Member and do not exclude yourself from the Class, the only way to get a payment is to submit a Proof of Claim. You may submit a Proof of Claim and still object to any aspect of the Settlement, the request for an award of attorneys’ fees and expenses, and/or the Plan of Allocation. If you submit a Proof of Claim, you give up your right to participate in another lawsuit against the Defendants for the legal claims in this case. See Answer to Question 12 in the Notice for a more detailed description of what you are giving up if you submit a Proof of Claim.
EXCLUDE YOURSELF Get no payment. This is the only option that allows you to participate in another lawsuit against the Defendants for the legal claims in this case.
OBJECT If you are a Class Member and do not exclude yourself from the Class, you may write to the Court if you do not like the Settlement, the request for attorneys’ fees and expenses, or the Plan of Allocation. If you submit an objection to the Settlement, Plan of Allocation, or the request for an award of attorneys’ fees and expenses and do not submit a Proof of Claim seeking payment from the Settlement proceeds, your objection may be rejected because you would not have an interest in the Settlement Fund.
GO TO A HEARING You may ask to speak in Court about the fairness of the Settlement, the request for attorneys’ fees and expenses, or the Plan of Allocation.
DO NOTHING If you do nothing, you will not receive any payment, will not be allowed to object to the Settlement, and will give up your right to participate in another lawsuit against the Defendants for the legal claims in this case. See Answer to Question 12 in the Notice for a more detailed description of what you are giving up if you do nothing.

IMPORTANT DATES & DEADLINES

Submit a Claim Form: March 21, 2016
Request Exclusion: February 19. 2016
File an Objection: February 19. 2016
Court Hearing on Fairness of Settlement: March 21, 2016 at 10:00 a.m.