NEW YORK, July 29, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in National General Holdings Corp. ("National General" or the "Company") (NASDAQ: NGHC) of the September 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in National General stock or options between August 6, 2015 and August 9, 2017and would like to discuss your legal rights, click here:www.faruqilaw.com/NGHC. There is no cost or obligation to you.
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[email protected]
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased National General securities between August 6, 2015 and August 9, 2017 (the "Class Period"). The case, City of North Miami Beach Police Officers' and Firefighters' Retirement Plan v. National General Holdings Corp., No. 2:19-cv-06468 was filed on July 25, 2019 and has been assigned to Judge Cormac J. Carney.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and misleading statements and/or failing to disclose adverse information regarding National General's business and operations. The complaint alleges that defendants failed to disclose that National General, together with banking giant Wells Fargo, had engaged in a massive insurance scheme to bilk Wells Fargo customers out of millions of dollars.
Through this scheme, National General forced thousands of customers to pay for auto insurance – commonly known as Collateral Protection Insurance ("CPI") – that they did not need or want. National General served as Wells Fargo's CPI vendor for all aspects of the program from July 2015 until the program was discreetly terminated in September 2016. Defendants possessed information showing that these customers already had their own insurance, but forced them to be subject to redundant, unnecessary, and overly expensive CPI policies anyway. In addition, while defendants were concealing their participation in the fraudulent CPI scheme from investors, they were reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme. As a result of this information being withheld from the market, National General common stock traded at artificially inflated prices of more than $25 per share during the Class Period.
Specifically, on July 27, 2017, The New York Times published an article that revealed for the first time the CPI forced-placed insurance scheme. The article cited an internal report commissioned by Wells Fargo's executives, which reportedly stated that more than 800,000 auto loan customers, including active military personnel, had paid for unnecessary CPI, pushing nearly 274,000 of them into delinquency and resulting in more than 20,000 unlawful vehicle repossessions. In the days that followed, attention increasingly turned to National General and its role in the scheme. The Company faced numerous regulatory investigations, congressional scrutiny, and civil lawsuits that caused a decline in the price of National General shares.
On this news, National General's stock price fell from $21.26 on July 26, 2017 to $18.00 on August 10, 2017—a $3.26 or a 15.33% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who 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 to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding National General's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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