Class action complaints have been filed in the United States District Court for the Southern District of New York and the United States District Court for the Central District of California against AmTrust and certain officers of the Company on behalf of investors who purchased or otherwise acquired AmTrust securities between May 10, 2016 and February 24, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
On February 27, 2017 before the market opened, AmTrust issued a press release reporting certain fourth quarter and full year 2016 financial results. Among other things, AmTrust reported a decrease in net income due to a reserve charge of $65 million, or approximately $0.24 per diluted share, primarily related to strengthening of prior year loss and loss adjustment reserves in its Specialty Program segment. Additionally, the Company disclosed that it would be filing for an extension of time to file its Form 10-K with the SEC for the year ended December 31, 2016, and that it had identified material weaknesses in its internal control over financial reporting "related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources with the organization."
Following the February 27, 2017 disclosures, the price of AmTrust's shares declined by $5.32 per share, more than 19%, to close at $22.34 per share.
Then, on March 16, 2017 after the market closed, AmTrust issued a press release announcing that its 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 up. Additionally, the Company announced that the Company's earnings and press releases related to the corresponding financial statements, as well as AmTrust's fourth quarter and fiscal 2016 earnings release dated February 27, 2017 should no longer be relied upon.
Following the March 16, 2017 disclosures, the price of AmTrust's shares declined significantly in midday trading.
If you are a member of the proposed Class, you may move the court no later than May 1, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you are an investor in AmTrust or you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/investor-alert-kaplan-fox-announces-investigation-of-amtrust-financial-services-inc-300425531.html
SOURCE Kaplan Fox & Kilsheimer LLP