Robbins LLP: AmTrust Financial Services, Inc. (AFSI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against AmTrust Financial Services, Inc. (NASDAQGS: AFSI) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of AmTrust securities pursuant to the company’s November 12, 2015 offering (the “Offering”), for alleged violations of the Securities Act of 1933 by AmTrust’s officers and directors. AmTrust, through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally.
AmTrust Accused of Issuing Inaccurate Financial Reports in Connection with its Offering
According to the complaint, AmTrust incorporated misleading financial reports from 2014 and 2015 in its registration statement and prospectus issued in connection with the Offering. On February 27, 2017, AmTrust revealed that it had identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016. The company further disclosed that the weaknesses were related to ineffective assessment of the risks associated with the financial reporting and an insufficient complement of corporate accounting and corporate financial reporting resources. AmTrust also stated that it would correct certain financial statements for fiscal years ended December 31, 2015 and 2014, and certain financial information for fiscal years ended December 31, 2013 and 2012.
Then, on March 16, 2017, the company announced that its previously issued financial statements for 2014, 2015, and 2016 should no longer be relied upon due to errors related to revenue recognition and the accrual of bonuses. On this news, AmTrust’s stock fell nearly 19% to close at $17.58 per share on March 17, 2017. On April 4, 2017, AmTrust filed a Form 10-K with the U.S. Securities and Exchange Commission, stating, “The total impact of the restatements to net income attributable to common stockholders in 2014 and 2015 was a decline of 7.2% and 11.2%, respectively.” AmTrust’s stock fell further to $16.40 per share on April 27, 2017.
AmTrust Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.