NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Atlas Financial Holdings, Inc. (“Atlas” or the “Company”) (NASDAQ:AFH) of the May 4, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Atlas stock or options between March 13, 2017 and March 2, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/AFH. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who acquired Atlas securities between March 13, 2017, and March 2, 2018 (the “Class Period”). The case, Fryman et al v. Atlas Financial Holdings, Inc. et al, No. 1:18-cv-01640 was filed on March 5, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that the Company failed to employ internal controls to ensure appropriate accounting practices, including, but not limited to, the calculation of certain loss reserves; (2) that, as a result, the Company’s internal controls over financial reporting were materially weak; (3) that as a result the Company’s financial statements were inaccurate and misleading, including by understating certain loss reserves; (4) that, as a result of the foregoing, the Company’s statements regarding its business, operations, and prospects, were false and misleading.
Specifically, after market close on March 1, 2018, the Company announced a large increase to its loss reserves. Then, on March 2, 2018, the Company filed an 8-K with the U.S. Securities and Exchange Commission disclosing the aforementioned increase to its loss reserve. Boenning & Scattergood, Inc. analyst Robert Farnam subsequently downgraded the Company’s shares to neutral. Furthermore, Bloomberg news reported that Company’s risk of default had increased.
On this news, Atlas’s share price fell from $18.80 per share on March 1, 2018 to a closing price of $11.10 on March 2, 2018—a $7.70 or a 40.96% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Atlas’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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