When a certain industry has a helpless captive customer base one just doesn’t feel sorry for them when they mess up. Take the case of PMI – mandatory mortgage insurance for those who owe more than 80 percent of the value of their home. Perhaps the honeymoon is over for MGIC, Radian, and C-BASS. The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers of securities of Radian Group Inc. (“Radian” or the “Company”) from January 23, 2007 through July 31, 2007, inclusive (the “Class Period”).

The Complaint charges Radian and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Radian is a global credit risk management company. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company’s investment in C-BASS was materially impaired due to increasing margin calls; (2) that C-BASS’ investments were, at an alarming rate, substantially declining in value; (3) that the Company overstated its financial results by failing to properly and timely value its declining investment in C-BASS; (4) that the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles; and (5) that, as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.