SAN DIEGO & KINGSTON, N.Y.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Kingstone Companies, Inc. (NASDAQ: KINS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between March 14, 2018 and April 29, 2019. Kingstone offers property and casualty insurance products through its subsidiary, Kingstone Insurance Company ("KICO").
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/kingstone-companies-inc/
Kingstone Companies Failed to Record Sufficient Claims Reserves
According to the complaint, throughout the relevant period, Kingstone continually affirmed the company's internal control over financial reporting in its quarterly financial reports to the SEC for the full 2018 year. However, these reports proved to be materially false and misleading as they failed to disclose that Kingstone was not adequately following best practices for claims handling, which resulted in the company failing to record sufficient claims reserves. The lack of adequate control over financial reporting became clear in April 2019, when Kingstone had a $2.5 million charge to its IBNR reserves, based on a "comprehensive review of [the Company's] claims operations." As a result of the charges, the company expected to end the full year "with a combined ratio excluding catastrophe losses of 88% to 91% and catastrophe losses of 4 to 5 points" and reduced its full year 2019 revenue guidance. On this news, the company's share price fell $2.07, over 15%, to close at $11.61 per share, and continues to fall.
Kingstone Companies Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, email@example.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. Check out Stock Watch, our free investment monitoring program for shareholders.
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