NEW YORK, Aug. 8 /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Georgia against CompuCredit Corporation ('CompuCredit' or the 'Company') (NasdaqGS: CCRT) and various individuals on behalf of purchasers of CompuCredit securities who purchased between November 6, 2006 and June 9, 2008 (the 'Class Period').

The complaint alleges CompuCredit issued materially false and misleading statements regarding the Company's business and financial results. As a result of CompuCredit's false statements, its stock traded at artificially inflated prices during the Class Period, reaching its Class Period high of $40.61 per share on December 12, 2006.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company's assets contained millions of dollars worth of impaired and risky securities, many of which were backed by loans to subprime borrowers; (b) the Company was not adequately accounting for its provision for loan losses in violation of Generally Accepted Accounting Principles, causing its financial results to be materially misstated; (c) the Company's improper marketing and collection practices would lead to large fines and would harm the Company's future results; (d) the Company had far greater exposure to anticipated losses and defaults related to its subprime customers than it had previously disclosed; (e) given the deterioration in the market for asset-backed securities related to subprime consumers, the Company would be forced to reduce its lending operations due to liquidity concerns as it relied upon the sale of its asset-backed securities to fund its ongoing operations; and (f) given the increased volatility in the subprime market and increased level of delinquencies and defaults that CompuCredit was experiencing, the Company had no reasonable basis to make projections about its financial results.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

SOURCE Bronstein, Gewirtz & Grossman, LLC