Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Filed Against James River Group Holdings, Ltd.
RADNOR, PA, August 7, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors of James River Group Holdings, Ltd. (NASDAQ: JRVR) (“James River“) that a securities fraud class action lawsuit has been filed on behalf of those who bought or acquired James River ordinary actions Between Aug 1, 2019 and May 5, 2021, inclusive (the “Class Period”).
Deadline reminder: investors who bought or acquired James River ordinary actions during the Class Action Period may, not later than September 7, 2021, seek to be appointed as principal applicant representative of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; by e-mail to [email protected]; or Click on https://www.ktmc.com/james-river-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=james_river
James River is a holding company that owns and operates a group of specialist insurance and reinsurance companies. Its largest segment, Surplus and Surplus Line (“E&S”) insurance, focuses on policyholders who are generally unable to purchase insurance from standard line insurers due to perceived risks associated with their business. . Included in these segments E&S Lines is James river Commercial automotive division. In 2014, James River stepped up its commercial automobile division by underwriting a new type of insurance policy that covered Rasier LLC (“Rasier”), a subsidiary of the ridesharing company, Uber Technologies, Inc. (along with Rasier, “Uber”). On October 8, 2019, James River announced that it had delivered an early termination notice, taking effect December 31, 2019, for all insurance policies issued to Uber, however James River would remain under contract to cover future claims related to the period Uber policies were in effect.
The Recourse Period begins on Aug 1, 2019, the day after James River issued an after-market press release stating an “unfavorable development in the reserves of $ 2.3 million compared to the unfavorable evolution of the reserves of $ 2.2 million the previous year ”, which included $ 1.2 million unfavorable development of reserves in the E&S Lines segment. Throughout the Class Period, the Defendants repeatedly assured investors that the inherited contract posed no problem for them. James River.
The truth was revealed on May 5, 2021 when James River surprised the market by revealing a $ 170 million unfavorable reservations related to Uber policies. In order to cover his losses, James River announced that he was looking to increase $ 175 million through a public offer to purchase shares, the price of which was “the highest discount ever recorded in the sector” according to Bloomberg.
Following this news, James river the share price has fallen $ 12.27 per share, i.e. 26.83%, from a closing price of $ 46.50 per share on May 5, 2021 at a closing price of $ 34.23 per share on May 6, 2021.
The complaint alleges that throughout the period of the action, the defendants failed to disclose the following: (1) James River had not booked sufficiently for its Uber policies; (2) James River used an incorrect methodology to establish reservations that significantly underestimated its true exposure to Uber claims; (3) accordingly, James River was forced to increase its unfavorable reserves in subsequent quarters, even after canceling Uber’s policies; and (4) accordingly, the statements of the defendants concerning James river the business, operations and outlook were materially false and misleading and / or lacked a reasonable basis.
James River investors can, not later than September 7, 2021, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may choose to do nothing and remain an absent member of the class. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be named the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members, and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country relating to securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force in corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors from United States and all over the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (toll free)
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SOURCE Kessler Topaz Meltzer & Check, LLP