SAN FRANCISCO, April 12, 2017 /PRNewswire/ -- Shareholder
and consumer rights law firm Schubert Jonckheer & Kolbe LLP is
investigating potential claims on behalf of shareholders of AmTrust
Financial Services, Inc. (NASDAQ: AFSI) ("AmTrust") related to
errors in the company's financial statements and an ongoing
government probe into AmTrust's suspect accounting practices.
Click here to learn about the investigation:
http://classactionlawyers.com/amtrust. There is no cost or
obligation to you.
On April 11, 2017, The Wall Street
Journal revealed that an auditor at AmTrust's former accounting
firm, BDO USA LLP, secretly
recorded internal conversations in 2014 regarding AmTrust on behalf
of the FBI and in cooperation with the SEC as a whistleblower. The
recordings were part of a continuing federal investigation into the
company's accounting practices. A separate examination by the New
York Department of Financial Services, a leading state regulator,
is also reportedly underway. On this news, AmTrust shares fell
$3.57 (or approximately 19%), to
close at $15.30.
These revelations occurred in the wake of several AmTrust
announcements regarding the integrity of its financial reporting
practices. On February 27, 2017,
AmTrust announced that it would take an unexpected $65 million reserve charge, that it had
identified a material weakness in its internal control over
financial reporting that existed as of December 31, 2016, and that it expected to
correct errors in its financial statements for fiscal years ended
December 31, 2015 and 2014. Then, on
April 3, 2017, AmTrust filed its
delayed Form 10-K for the year ended December 31, 2016, including restated financial
statements and related disclosures for 2014 and 2015. The
restatements primarily involve the timing of recognition of revenue
in the company's service and fee business. The total impact of the
restatements to net income attributable to common stockholders in
2014 and 2015 was a decline of 7.2% and 11.2%,
respectively.
AmTrust's stock price has plummeted in recent months following
these events, falling $12.36 (or
approximately 45%) since the market closed on February 24, 2017.
Our investigation concerns whether AmTrust's officers and
directors breached their fiduciary duties by making false and
misleading statements to shareholders and the market or engaged in
other accounting misconduct. These executives may have also exposed
the company to significant civil liability, as AmTrust currently
faces class action lawsuits involving these events.
If you currently own stock in AmTrust and wish to obtain
additional information about our investigation and your legal
rights, please contact Dustin
Schubert via email at dschubert@schubertlawfirm.com or by
telephone at (415) 788-4220, or fill out the form on our website at
http://classactionlawyers.com/amtrust.
About Schubert Jonckheer & Kolbe
Schubert Jonckheer & Kolbe has extensive experience in
prosecuting securities claims, representing investors throughout
the nation in securities and shareholder lawsuits. Attorney
advertising. Prior results do not guarantee similar
outcomes.
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SOURCE Schubert Jonckheer & Kolbe LLP