21st Century Holding Company

Company Name
21st Century Holding Company
Stock Symbol
TCHC
Class Period
October 3, 2006 to May 3, 2007
Status
Settled

This action is brought on behalf of public investors who acquired securities of 21st Century Holding Company during the period October 3, 2006 through May 3, 2007 (the “Class Period”). The Complaint charges 21st Century Holding Company and certain of the Company’s executive officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b-5. The Complaint alleges that Defendants reported the Company’s financial results in a positive manner and issued positive financial guidance touting the Company’s purportedly strong financial performance and prospects. Defendants, however, failed to fully disclose, and their assertions misleadingly failed to take into account, the negative effect on the Company’s financial performance and prospects resulting from their decision to increase loss reserves through the hiring of new actuaries, the increased competition from the state-backed Citizens Property Insurance Corp., and the impact of increased reinsurance rates. As a result, during the Class Period Defendants made false and misleading statements of present fact and financial guidance which misrepresented 21st Century’s business and financial performance.