SAN FRANCISCO--(BUSINESS WIRE)--Today, Hagens Berman, the preeminent plaintiffs’ class action law firm, was appointed lead counsel in a class action brought on behalf of investors against Hallmark Financial Services, Inc. (NASDAQ: HALL). The firm encourages individuals with relevant, non-public information regarding Hallmark to contact the firm now.
Hallmark Financial Services, Inc. (HALL) Securities Class Action:
The original suit, filed in the United States District Court for the Northern District of Texas on May 5, 2020, alleges that throughout the Class Period, Defendants misrepresented and concealed: (1) that the Company lacked effective internal controls over accounting and financial reporting related to reserves for unpaid losses; and (2) that the Company improperly accounted for reserves for unpaid losses and loss adjustment expenses related to its Binding Primary Commercial Auto business.
Investors began to learn the truth, according to the complaint, through a series of disclosures beginning on Mar. 2, 2020, when Hallmark announced it was exiting the Binding Primary Commercial Auto business and reported a $63.8 million loss development for prior underwriting years.
Then, on Mar. 11, 2020, Hallmark announced it had dismissed its independent auditor BDO over a “disagreement” concerning the Company’s estimated reserves for unpaid losses and loss adjustment expenses throughout 2019.
Finally, on Mar. 17, 2020, Hallmark disclosed a letter from BDO to the SEC revealing that BDO had expanded significantly the scope of its audit on Jan. 31, 2020, with respect to the matters of disagreement, and that “a substantial portion the requests had not been received and/or tested prior to our termination.”
These disclosures caused Hallmark shares to decline over 75% lower between Mar. 2 and Mar. 18, 2020.
Today, Hagens Berman was named lead counsel in the case by the Honorable Brantley Starr, with Steve Berman, managing partner and co-founder of firm, serving as the lead trial counsel.
“We are pleased with the appointment and eager to represent the class,” said Berman.
If you have information regarding Hallmark’s alleged fraud, Hagens Berman wants to hear from you. Individuals with non-public information regarding Hallmark are encouraged to contact the firm by emailing HALL@hbsslaw.com or by calling 844-916-0895.
For more information about the case visit: http://www.hbsslaw.com/cases/HALL
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.