WAYNE, Pa., Oct. 15, 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 March 1, 2011 and October 7, 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 email@example.com 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 October 7, 2013, Tower issued a press release announcing that it had completed a comprehensive review of its loss reserves as of June 30, 2013 and would be increasing its reserve to $365 million—an amount substantially larger than previously disclosed. The Company additionally disclosed that it would be taking a non-cash goodwill impairment charge of approximately $215 million for the second quarter of 2013 and that its Board of Directors in conjunction with its lead financial advisor, JP Morgan Securities LLC, would be "reviewing a range of strategic options."
As a result, on the same day, Bloomberg published an article entitled, "Tower Reviewing 'Strategic Options' After Reserve Shortfall," which discussed the implications of the Company's press release and additionally reported that Fitch Ratings cut Tower's rating six steps after finding that Tower's "competitive position ha[d] been materially damaged, negatively impacting the company's financial flexibility and ability to write new business[.]"
Overall, Tower's stock price fell $17.22 per share in the aggregate, representing a staggering decline of approximately 80% in two months.
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 firstname.lastname@example.org 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.
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