NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired National General Holdings Corp. (“National General” or the “Company”) (NASDAQ:NGHC) securities during the period from August 6, 2015 to August 9, 2017 (the “Class Period”). Investors have until September 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) National General, together with banking giant Wells Fargo, had engaged in a massive auto insurance scheme in which National General forced thousands of customers to pay for redundant, unnecessary, and overly expensive Collateral Protection Insurance (“CPI”) that they did not need or want; and (ii) while National General was concealing its participation in the fraudulent CPI scheme from investors, they were reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme.
On July 27, 2017, The New York Times published an article that revealed for the first time the CPI forced-placed insurance scheme. The article cited an internal report commissioned by Wells Fargo’s executives, which reportedly stated that more than 800,000 auto loan customers had paid for unnecessary CPI. In the days that followed, National General faced numerous regulatory investigations, congressional scrutiny, and civil lawsuits that caused a decline in the price of National General shares. Between July 26, 2017, before the story broke, and August 10, 2017, after the launch of a congressional inquiry into the scandal, the price of National General common stock fell more than 15%.
If you acquired National General securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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