NEW YORK, — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Atlas Financial Holdings, Inc. (“Atlas” or the “Company”) (NASDAQ:AFH) in the United States District Court for the Northern District of Illinois on behalf of a class consisting of investors who purchased or otherwise acquired Atlas securities on the open market from March 13, 2017 through March 2, 2018, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges Defendants failed to disclose: (1) that the Company failed to employ internal controls to ensure appropriate accounting practices; including, but not limited to, the calculation of certain loss reserves; (2) that, as a result, the Company’s internal controls over financial reporting were materially weak; (3) that as a result the Company’s financial statements were inaccurate and misleading, including by understating certain loss reserves; and, (4) that, as a result of the foregoing, Defendants’ statements about Atlas’ business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On March 2, 2018, the Company announced it took a significant loss-reserve charge in the fourth quarter related to the Company’s commercial auto claims from 2015 and prior. On this news, the Company’s share price fell $7.70 or 40.96%, to close at $11.10 on March 2, 2018.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the May 4, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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