LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the May 1, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) (NASDAQ: AFSI) securities between March 2, 2015 and March 16, 2017, and are encouraged to contact the firm. AmTrust investors have until May 1, 2017 to file a lead plaintiff motion.
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.
Then, on April 11, 2017, the company’s stock price plummeted more than 20% during intraday trading on news of a continuing SEC investigation into AmTrust’s accounting practices.
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 or otherwise acquired AmTrust shares during the Class Period you may move the Court no later than May 1, 2017 to request appointment as lead plaintiff. 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 shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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