Lieff Cabraser Announces Class Action Litigation Against AmTrust Financial Services, Inc. - AFSI
SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased the securities of AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) (NasdaqGS: AFSI) between February 15, 2011 and December 11, 2013, inclusive (the “Class Period”).
If you purchased AmTrust securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 7, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
AmTrust investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1 800 541-7358.
Background on the AmTrust Securities Class Litigation
AmTrust, headquartered in New York, New York, offers insurance coverage to policyholders including property/casualty, workers’ compensation, special risk, and warranty insurance, and extended service plans.
The action alleges that defendants made false and/or misleading statements throughout the Class Period, as well as failed to disclose material adverse information, about AmTrust’s business, operations, and prospects, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On December 12, 2013, a report by analyst firm GeoInvesting exposed certain alleged accounting improprieties at AmTrust. Such alleged improprieties included: 1) manipulation of AmTrust’s loan loss reserves, thereby inflating reported earnings; 2) manipulation of the Company’s deferred tax liabilities; and 3) underestimation of the Company’s discount rates for its life settlement contracts in order to inflate AmTrust’s reported assets and total stockholder’s equity.
On this news, the price of AmTrust stock fell $4.63 per share, or more than 12%, from a closing price of $38.30 on December 11, 2013, to close at $33.67 per share on December 12, 2013.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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