The U.S. District Court for the Middle District of North Carolina dismissed with prejudice a securities fraud class action against the chief executive officer and chief financial officer of Triad Guaranty, Inc., a mortgage insurer that is now in bankruptcy. The complaint had alleged that Triad and its officers had concealed the risks associated with its principal line of business, understated its loss reserves, misreported its risk-to-capital ratio and otherwise painted an overly bright picture of its financial health. In a comprehensive 58 page opinion, senior Judge Carlton Tilley, Jr. rejected the report and recommendation of the Magistrate Judge and held that the plaintiffs had failed to identify false statements and had inadequately alleged that the defendants acted with scienter.

Litigation partner Richard Rosen led the team, which included litigation partner Robyn Tarnofsky.