BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming May 15, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class of investors who purchased or otherwise acquired Patriot National, Inc. (“Patriot National” or the “Company”) (NYSE: PN) securities between August 15, 2016 and March 3, 2017, inclusive (the “Class Period”). Patriot National investors have until May 15, 2017 to file a lead plaintiff motion.
On March 3, 2017, the Company announced that it had entered into an agreement with Guarantee Insurance Group (“GIG”) and Steve Mariano, regarding the service agreements between the Company and GIG’s wholly-owned subsidiary Guarantee Insurance Company (“GIC”). Mr. Mariano is both the Chairman, CEO, and majority owner of Patriot National, as well as the majority owner of GIG. The Company further disclosed that GIC is the Company’s principal customer, with contracts and relationships from GIC generating $107.8 million, or 59% of the Company’s Total Fee Income and Fee Income from Related Party for the nine-months ended September 30, 2016. This disclosure comes on the heels of a report in December of 2016 that a Patriot National shareholder sued the Company in Delaware based on allegations that Mr. Mariano had been using the company “as his personal piggy bank” and that Mariano made a series of decisions that were detrimental to the Company’s business, but that allowed him to retain control of the Company.
On this news, the Company’s stock price fell from a close of $4.39 on March 3, 2017, to a close of $3.01 on March 8, 2017, a decline of more than 30%, thereby injuring investors.
According to the Complaint filed in this class action, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the alleged breaches of fiduciary duty by Patriot National CEO Steve Mariano, and alleged related party transactions that served to benefit Mr. Mariano to the detriment of other Company shareholders. Specifically, the complaint alleges that Defendants failed to disclose: (1) that the Patriot National special committee was beholden to Mariano; (2) that, as such, the special committee was operating for the benefit of Mariano, and not the Company or its shareholders; (3) that the special committee did not independently asses the merits of the Ebix transaction; (4) that the special committee was not exploring strategic alternatives in order to maximize shareholder value; and (5) that, as a result of the foregoing, Defendants’ statements about Patriot National’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you purchased Patriot National securities, you may move the Court no later than May 15, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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