BERWYN, Pa., March 21, 2017 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Southern District of New York on behalf of all persons or entities that purchased AmTrust Financial Services, Inc. ("AmTrust" or the "Company") (NASDAQ: AFSI) on behalf of purchasers of the Company's securities between March 2, 2015 and March 16, 2017, inclusive (the "Class Period").
AmTrust shareholders may, no later than May 1, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of AmTrust and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com.
AmTrust, through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally.
The shareholder class action complaint alleges that AmTrust and certain of its executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations, and prospects to investors during the Class Period, including the following: (1) that the Company had ineffective assessment of the risks associated with financial reporting; (2) that the Company had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; and (3) that the Company lacked effective controls over financial reporting. The complaint further alleges that, as a result of the foregoing, the defendants' statements about AmTrust's business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
On February 27, 2017, AmTrust disclosed that it had identified a "material weakness in its internal control over financial reporting" and that it would require additional time to file its Fiscal 2016 financial statements with the SEC. The Company further disclosed that the material weakness in its internal control over financial reporting "specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization."
Following this news, shares of AmTrust's stock fell $5.32 per share, or over 19%, to close February 27, 2017 at $22.34 per share.
Then, on March 16, 2017, the Company disclosed that "the Audit Committee of the AmTrust Board of Directors, in consultation with management and its current and former independent auditors, concluded that the Company's previously issued consolidated financial statements for 2014 and 2015 (including for each of the four quarters of 2015) as well as for the first three quarters of 2016 should be restated and should no longer be relied upon." Additionally, AmTrust reported that "the reports of BDO USA LLP, the Company's former independent auditor, on the Company's consolidated financial statements for 2014 and 2015, including its opinions on the effectiveness of internal control over financial reporting for such periods, likewise should no longer be relied upon."
Following this update, shares of AmTrust's stock declined an additional $4.03 per share, or over 18%, to close on March 17, 2017 at $17.58 per share.
If you are a member of the class, you may, no later than May 1, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at firstname.lastname@example.org or visit: www.maniskas.com. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE RM LAW, P.C.