LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors who purchased AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) (NASDAQ: AFSI) securities between May 10, 2016 and February 24, 2017, inclusive (the “Class Period”). AmTrust investors have until May 1, 2017 to file a lead plaintiff motion.
Investors suffering losses on their AmTrust investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 or by email to firstname.lastname@example.org.
On February 27, 2017, the Company announced that it identified a material weakness in its internal control over financial reporting that existed as of December 31, 2016, and that it expects to correct errors in its financial statements for fiscal years ended December 31, 2015 and 2014, and certain financial information for fiscal years ended December 31, 2013 and 2012. The Company also announced that it intended to delay the filing of its Form 10-K for the year ended December 31, 2016. The Company noted that it appointed a new independent registered public accounting firm on April 1, 2016, and stated that additional time was needed to review its consolidated financial statements and internal controls over financial reporting. On this news, the Company’s stock price fell nearly 20% on February 27, 2017, thereby injuring investors.
The Complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) AmTrust had ineffective assessment of the risks associated with the financial reporting; (2) AmTrust had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; (3) as a result, AmTrust lacked effective controls over financial reporting; and (4) consequently, defendants' statements about AmTrust's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased shares of AmTrust during the Class Period you may move the Court no later than May 1, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at http://glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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