SAN DIEGO & ELK GROVE VILLAGE, Ill.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Atlas Financial Holdings, Inc. (NasdaqGM: AFH) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 13, 2017 and March 2, 2018. Atlas, through its subsidiaries, underwrites commercial automobile insurance policies in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/atlas-financial-holdings-inc
Atlas Accused of Understating Certain Loss Reserves
According to the complaint, throughout the class period, Atlas attested to the effectiveness of the company's financial reporting. However, Atlas failed to employ internal controls to ensure appropriate accounting practices, in turn causing the company to understate certain loss reserves. On March 1, 2018, Atlas announced a large increase to its reserves, noting disappointment in the corresponding reduction of the company’s book value. Following the announcement, on March 2, 2018, Boenning & Scattergood, Inc. downgraded the company's shares to neutral, and Bloomberg news noted that the company's risk of default had increased. On this news, Atlas' stock price fell over 40% to close at $11.10 per share on March 2, 2018.
Atlas Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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