NEW YORK — Safirstein Metcalf LLP reminds investors that a class action lawsuit has been filed against AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) (NASDAQ:AFSI) and certain of its officers, and is filed on behalf of a class consisting of all persons or entities who purchased AmTrust securities between March 2, 2015 and March 16, 2017, both dates inclusive (the “Class Period”).
If you purchased Amtrust securities during the Class Period, and would like more information about getting involved in the Amtrust Shareholder Class Action, please call 1-800-221-0015, or email [email protected]. If you wish to serve as lead plaintiff, you must move the Court no later than May 1, 2017.
A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Company: AMTRUST FINANCIAL SERVICES, INC.
Class Period: 3/2/15 – 3/16/17
Lead Plaintiff Date: 5/1/17
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) AmTrust had an ineffective assessment of the risks associated with the financial reporting; (2) AmTrust had an insufficient complement of corporate accounting and corporate financial reporting resources within the organization; (3) as a result, AmTrust lacked effective controls over financial reporting; and (4) consequently, defendants’ statements about AmTrust’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 27, 2017, the Company announced that it identified a material weakness in its internal control over financial reporting that existed as of December 31, 2016. Amtrust also said and that it expects to correct errors in its financial statements for fiscal years ended December 31, 2015 and 2014, and certain financial information for fiscal years ended December 31, 2013 and 2012, and that it intended to delay the filing of its Form 10-K for the year ended December 31, 2016. Following this news, AmTrust stock dropped $5.32 per share, or over 19.23%, to close at $22.34 on February 27, 2017.
Then, on March 16, 2017, the Company disclosed that “the Audit Committee of the AmTrust Board of Directors, in consultation with management and its current and former independent auditors, concluded that the Company’s previously issued consolidated financial statements for 2014 and 2015 (including for each of the four quarters of 2015), as well as for the first three quarters of 2016 should be restated and should no longer be relied upon.” Additionally, AmTrust reported that “the reports of BDO USA LLP, the Company’s former independent auditor, on the Company’s consolidated financial statements for 2014 and 2015, including its opinions on the effectiveness of internal control over financial reporting for such periods, likewise should no longer be relied upon.”
Following this news, shares of AmTrust’s stock declined an additional $4.03 per share, or over 18%, to close on March 17, 2017 at $17.58 per share.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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