NEW YORK, March 17, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in AmTrust Financial Services, Inc. ("AmTrust" or the "Company") (NASDAQ: AFSI) of the May 1, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased AmTrust securities between May 10, 2016 and February 24, 2017 (the "Class Period"). The case, Benjamin Miller v. AmTrust Financial Services, Inc. et al, No. 2:17-cv-01608 was filed on February 28, 2017, and has been assigned to Judge Christina A Snyder.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company had ineffective assessment of the risks associated with the financial reporting; (2) the Company had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; (3) in turn, the Company lacked effective controls over financial reporting; and (4) as a result, the Company's statements about the its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, on February 27, 2017, the Company issued a press release revealing that it had identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016.
On this news, AmTrust's share price fell from $27.66 per share on February 24, 2017 to a closing price of $22.34 on February 27, 2017 -- a $5.32 or a 19.23% drop.
Request more information now by clicking here: www.faruqilaw.com/AFSI . There is no cost or obligation to you.
If you invested in AmTrust securities between May 10, 2016 and February 24, 2017 and would like to discuss your legal rights, visit www.faruqilaw.com/AFSI. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding AmTrust's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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SOURCE Faruqi & Faruqi, LLP