NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against James River Group Holdings (NASDAQ: JRVR) on behalf of James River stockholders. Our investigation concerns whether James River has violated the federal securities laws and/or engaged in other unlawful business practices.
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James River is an insurance holding company that owns and operates a group of specialty insurance and reinsurance companies. The Company operates in three segments: excess and surplus lines of insurance, specialty admitted insurance, and casualty reinsurance. James River maintains a commercial auto insurance line of business within its excess and surplus lines segment. Previously, the Company's largest customer was Rasier LLC ("Rasier"), a wholly owned subsidiary of Uber Technologies, Inc. (“Uber”).
The investigation is focused on whether James River misled investors about its insurance policies covering Uber ride-share drivers that were insured through Rasier, and the extent of the claims and losses incurred on those policies.
On October 8, 2019, James River announced that it had canceled all insurance policies issued to Rasier and its affiliates, placing the entire account in runoff. As a result, the Company incurred a “[p]re-tax, adverse development” charge of up to $60 million for the third quarter of 2019. On this news, James River's stock price declined $11.06 per share, or approximately 23%.
Then, on May 5, 2021, James River disclosed an additional $170 million “unfavorable development” charge as a result of a re-assessment of expected payouts on claims related to a “previously canceled account” that had been in runoff since 2019. As a result, the next day, James River also announced that it would price its previously announced underwritten public stock offering at $31 per share-representing a 33% discount from the Company's closing stock price on the previous day.
On this news, James River's stock price declined $12.27 per share, or over 26%, to close at $34.23 on May 6, 2021.
If you purchased or otherwise acquired James River shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.