BERWYN, Pa., March 21, 2017 /PRNewswire/ -- RM LAW, P.C.
announces that a class action lawsuit has been filed in United
States District Court for the Southern District of New York on behalf of all persons or entities
that purchased AmTrust Financial Services, Inc. ("AmTrust" or the
"Company") (NASDAQ: AFSI) on behalf of purchasers of the Company's
securities between March 2, 2015 and
March 16, 2017, inclusive (the "Class
Period").
AmTrust shareholders may, no later than May 1, 2017, move the Court for appointment as a
lead plaintiff of the Class. If you purchased shares of
AmTrust and would like to learn more about these claims or if you
wish to discuss these matters and have any questions concerning
this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844)
291-9299 or to sign up online, visit:
www.maniskas.com.
AmTrust, through its subsidiaries, underwrites and provides
property and casualty insurance in the
United States and internationally.
The shareholder class action complaint alleges that AmTrust and
certain of its executive officers made a series of materially false
and misleading statements and/or failed to disclose material
adverse facts about the Company's business, operations, and
prospects to investors during the Class Period, including the
following: (1) that the Company had ineffective assessment of the
risks associated with financial reporting; (2) that the Company had
an insufficient complement of corporate accounting and corporate
financial reporting resources within the organization; and (3) that
the Company lacked effective controls over financial reporting. The
complaint further alleges that, as a result of the foregoing, the
defendants' statements about AmTrust's business, operations, and
prospects were false and misleading and/or lacked a reasonable
basis at all relevant times.
On February 27, 2017, AmTrust
disclosed that it had identified a "material weakness in its
internal control over financial reporting" and that it would
require additional time to file its Fiscal 2016 financial
statements with the SEC. The Company further disclosed that the
material weakness in its internal control over financial reporting
"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."
Following this news, shares of AmTrust's stock fell $5.32 per share, or over 19%, to close
February 27, 2017 at $22.34 per share.
Then, on March 16, 2017, the
Company disclosed that "the Audit Committee of the AmTrust Board of
Directors, in consultation with 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." Additionally, AmTrust reported that "the
reports of BDO USA LLP, the
Company's former independent auditor, on the Company's consolidated
financial statements for 2014 and 2015, including its opinions on
the effectiveness of internal control over financial reporting for
such periods, likewise should no longer be relied upon."
Following this update, shares of AmTrust's stock declined an
additional $4.03 per share, or over
18%, to close on March 17, 2017 at
$17.58 per share.
If you are a member of the class, you may, no later than
May 1, 2017, request that the Court
appoint you as lead plaintiff of the class. A lead plaintiff
is a representative party that acts on behalf of other class
members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's
claim is typical of the claims of other class members, and that the
class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as "lead plaintiff." Your ability to share in any recovery is
not, however, affected by the decision whether or not to serve as a
lead plaintiff. You may retain RM LAW, P.C. or other counsel
of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C.
(Richard A. Maniskas, Esquire)
toll-free at (844) 291-9299 or by email at rm@maniskas.com or
visit: www.maniskas.com. For more information about class
action cases in general or to learn more about RM LAW, P.C. please
visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM
LAW, P.C. is devoted to protecting the interests of individual and
institutional investors in shareholder actions in state and federal
courts nationwide.
CONTACT: RM LAW, P.C.
Richard A. Maniskas,
Esquire
1055 Westlakes Dr., Ste. 3112
Berwyn, PA 19312
484-324-6800
844-291-9299
www.maniskas.com
rm@maniskas.com
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SOURCE RM LAW, P.C.