BOSTON, March 20, 2017 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that it has filed a class action lawsuit against AmTrust Financial Services, Inc. ("AmTrust" or the "Company") (NASDAQ: AFSI) and certain of its officers and directors for violations of the federal securities laws.
If you are an investor who purchased or otherwise acquired AmTrust securities between March 2, 2015 and March 16, 2017 (the "Class Period"), and wish to serve as lead plaintiff, you must move the Court no later than May 1, 2017 for lead plaintiff status. If you wish to become involved in the litigation or have questions about your legal rights, please contact attorney Bradley Vettraino at (617) 398-5600, by email at [email protected], or by visiting www.blockesq.com/amtrust.
On February 27, 2017 AmTrust disclosed it would not timely file its 2016 annual financial statements, explaining that it had "identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016, 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." On this news, AmTrust shares fell more than 15%.
On March 16, 2017, AmTrust announced that "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." On this news, the Company's stock plunged nearly 20%, causing hundreds of millions in losses to investors.
The lawsuit, pending in the Southern District of New York and captioned Sachetti v. AmTrust Financial Services, Inc., et al., No. 1:17-cv-02001, alleges that throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (i) AmTrust had ineffective assessment of the risks associated with its financial reporting; (ii) AmTrust had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; (iii) AmTrust did not appropriately recognize a portion of its warranty contract revenue; (iv) AmTrust did not recognize expensed bonuses in the appropriate year; (v) AmTrust failed to maintain effective internal controls over financial reporting; and (vi) as a result of the foregoing, AmTrust's publicly disseminated financial statements were materially false and misleading.
As a member of the class, you may seek to file a motion to serve as a lead plaintiff by May 1, 2017, or take no action and remain an absent class member. Confidentiality to whistleblowers or others with information relevant to this investigation is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
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Block & Leviton LLP
Bradley J. Vettraino
155 Federal Street, Suite 400
Boston, MA 02110
SOURCE Block & Leviton LLP