The Law Firm of Lasky & Rifkind, Ltd. Announces Class Action Lawsuit Against American Physicians Capital Inc

Business Wire, Jan 7, 2004

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Jan. 7, 2004

Lasky & Rifkind, Ltd., a law firm with offices in New York and Chicago, announces that a lawsuit has been filed in the United States District Court for the Western District of Michigan, on behalf of persons who purchased or otherwise acquired publicly traded securities of American Physicians Capital Inc. ("American Physicians" or the "Company") (NASDAQ:ACAP) between February 13, 2003 and November 6, 2003, inclusive, (the "Class Period"). The lawsuit was filed against American Physicians and William B. Cheeseman and Frank H. Freund.

If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at investorrelations@laskyrifkind.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than March 3, 2004 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that Defendants failed to disclose that the Company's provisions for its loss reserves were inadequate and that they failed to increase the reserves adequately to compensate for adverse conditions.

On November 12, 2003, the company shocked the market when pre-announced that the Company expected a "substantial net loss" for the quarter due to significant adjustments in reserves for policy losses. The additional reserves were expected to approximate $43 million pre-tax. In addition, as a result of the loss, the Company expects that it would not be able to report the deferred tax asset that results from its accumulated net operating losses and other timing differences. This resulted in a $50 million non-cash charge to establish a valuation allowance to eliminate the deferred tax asset. This news sent the share prices of American Physicans lower by approximately 37%, or $10.34 per share to $17.41 per share on very heavy volume.

If you bought American Physicians securities between February 13, 2003 and November 6, 2003, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.