WAYNE, Pa., Oct. 8, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP announces that it has filed a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors who purchased Tower Group International, Ltd. ("Tower" or the "Company") (NASDAQ: TWGP) common stock during the period between May 10, 2011 and September 17, 2013, inclusive (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/twgp.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and misleading statements and/or failed to disclose that: (a) Defendants were improperly accounting for the Company's loss reserves, good will and tax accounts; (b) the Defendants lacked the necessary internal controls over financial reporting; (c) consequently, the Company's financial statements were deficient and misleading at relevant times; and (d) based upon the above, the Defendants lacked a reasonable basis for their positive statements about the Company during the Class Period.
On August 7, 2013, Tower announced that the Company was postponing its release of its financial results for the second quarter of 2013. The Company stated that its management concluded that "additional time [was] needed to review matters relating to the estimate of its loss reserves and, primarily due to the integration of the Canopius merger, its allocation of goodwill and certain tax accounts." On August 8, 2013, the Company announced guidance with respect to its second quarter 2013 financial results. The Company retained an independent actuarial firm to review selected areas of Tower's loss reserves as of June 30, 2013. The information included how the Company could potentially record adverse reverse development of $60 million to $110 million pre-tax.
Following this news, the price of Tower's shares plummeted $5.20 per share, or more than 24%, to a closing price of $16.41 per share on August 8, 2013.
On September 17, 2013, Tower announced that it planned to release its second quarter 2013 financial results during the week of October 7, 2013. Tower reaffirmed that it was not providing and did not expect to provide any information with respect to its results for the second quarter, including the amount of any adjustments for its estimates of loss reserves and amounts of goodwill, until it releases its earnings for the second quarter during the week of October 7, 2013.
Based on this news, the Company's stock price dropped from a close of $13.86 on September 17, 2013, to a close of $9.99 per share on September 18, 2013—a decline of $3.875 per share or almost 28%, on unusually high trading volume. The stock has continued to decrease, as investors continue to digest this disheartening news. On September 20, 2013 the Company's stock price closed at $9.14 per share and on September 23, 2013 at $8.63 per share.
If you are a member of the class, you may, no later than October 21, 2013, 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 Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/twgp. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP