PHILADELPHIA--(BUSINESS WIRE)--Goldman Scarlato & Penny, P.C., (www.lawgsp.com) a law firm protecting the rights of investors, reminds shareholders that a class action lawsuit has been commenced on behalf of purchasers of shares AmTrust Financial Services, Inc. (NASDAQ: AFSI) between March 2, 2015 and March 16, 2017, inclusive. AmTrust shareholders have until May 1, 2017 to seek appointment as lead plaintiff.
According to the lawsuit, AmTrust and certain of its officers made false or misleading statements or failed to disclose that AmTrust: (1) had ineffective assessment of the risks associated with financial reporting; (2) had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; and (3) lacked effective controls over financial reporting. The lawsuit further alleges that, as a result, 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 issued a press release revealing that it had identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016. Then, in early April, 2017, AmTrust restated its financial results downward back to 2014 over a range of accounting issues, trimming more than 9% off of its’ previously reported net income for the past three years. AmTrust also announced that it replaced BDO USA LLP as its outside auditor. The price of AmTrust shares fell sharply on the news.
If you purchased AmTrust shares during the above period, you have until May 1, 2017 to request that the Court appoint you as lead plaintiff. Or, you may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
If you wish to learn more about the action, or what is involved in becoming a lead plaintiff, or if you have any questions concerning your rights with respect to this case, please contact Paul Scarlato by email at firstname.lastname@example.org or by phone at (484) 342-0700.
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