RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against AmTrust Financial Services, Inc. (Nasdaq: AFSI) (“AmTrust” or the “Company”) on behalf of purchasers of the Company’s securities between May 10, 2016 and February 24, 2017, inclusive (the “Class Period”).
AmTrust shareholders who purchased their securities during the Class Period may, no later than May 1, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/amtrust-financial-services-inc#join.
AmTrust, through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally.
The shareholder class action complaint alleges that AmTrust and certain of its executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations, and prospects to investors during the Class Period, including the following: (1) that the Company had ineffective assessment of the risks associated with financial reporting; (2) that the Company had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; and (3) that the Company lacked effective controls over financial reporting. The complaint further alleges that, as a result of the foregoing, 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 disclosed that it had identified a “material weakness in its internal control over financial reporting” and that it would require additional time to file its Fiscal 2016 financial statements with the SEC. The Company further disclosed that the material weakness in its internal control over financial reporting “specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization.” Following this news, shares of AmTrust’s stock fell $5.32 per share, or over 19%, to close February 27, 2017 at $22.34 per share.
AmTrust shareholders may, no later than May 1, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/amtrust-financial-services-inc#join.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.