NEW YORK, Feb. 18, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against AmTrust Financial Services, Inc. ("AmTrust" or the "Company") (Nasdaq:AFSI) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-736 is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of AmTrust between February 15, 2011 and December 11, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased AmTrust securities during the Class Period, you have until April 7, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
AmTrust, through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. The company operates in four segments: Small Commercial Business, Specialty Risk and Extended Warranty, Specialty Program, and Personal Lines Reinsurance.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that the Company: 1) manipulated its loan loss reserves in order to inflate reported earnings; 2) manipulated its deferred tax liabilities; 3) underestimated the discount rates for its life settlement contracts in an effort to inflate the Company's reported assets and total stockholder's equity; 4) the Company lacked adequate internal and financial controls; and 5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On December 12, 2013, a report by analyst firm Geoinvesting exposed certain alleged accounting improprieties at AmTrust. Such improprieties included: 1) manipulation of the Company's loan loss reserves; 2) manipulation of the Company's deferred tax liabilities; and 3) underestimating the Company's discount rates for its life settlement contracts.
On this news, shares of AmTrust fell $4.63 per share, more than 12%, on intraday trading, to a price of $33.67 on December 12, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com
Source: Pomerantz LLP