HCC Insurance Holdings Inc. is defending three lawsuits, one a class action, in connection with its admission that executives in the company engaged in backdating stock options that led to restatement of earnings.

The actions were all filed in Houston, where the specialty insurance carrier is based, at U.S. District Court Southern District of Texas. HCC had no comment on the litigation.

All three complaints allege that executives illegally profited from backdating stock options (the practice of awarding the stock at a price that is lower than the actual price of the stock on the day it was given to improve its value to the holder) and the practice resulted in a restatement and loss in share price for stockholders.

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