SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of AmTrust Financial Services, Inc. (NYSE: AFSS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between January 22, 2018 and January 18, 2019. AmTrust Financial Services is an insurance provider that focuses on small business insurance solutions with an emphasis on worker's compensation coverage.
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AmTrust Financial Services, Inc. (AFSS) Accused of Misleading Shareholders
According to the complaint, in November 2018, AmTrust made a merger agreement that allowed the Karfunkel-Zyskind Family, a family that already owned 55% of AmTrust, and private equity firm Stone Point Capital LLC to acquire the remaining 45% of AmTrust's minority common shares for $14.75 per share. Since only common stock was acquired in the merger, many stockholders were concerned about the future of AmTrust's preferred stock. In an effort to solicit approval for the merger and dispel concern for the future of the preferred stock, AmTrust and the Karfunkel-Zyskind family continuously reassured investors that although the common shares were being acquired, the preferred stock would remain publicly traded on the NYSE. Notwithstanding, two months later on January 18, 2019, AmTrust announced it would delist all six series of AmTrust preferred stock from the NYSE. Immediately upon this news, the prices of AmTrust's preferred stock dropped by almost 40%.
If you purchased AmTrust Financial Services, Inc. (AFSS) preferred stock during the class period, you have until October 28, 2019, to ask the court to be appointed lead plaintiff for the class.
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. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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