NEW YORK, March 17, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP
(www.kaplanfox.com) is investigating claims on behalf of investors
of AmTrust Financial Services, Inc. ("AmTrust" or the "Company")
(NASDAQ: AFSI). Investors who purchased shares of AmTrust
securities may be affected.
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 pmayer@kaplanfox.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
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: ffox@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
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SOURCE Kaplan Fox &
Kilsheimer LLP