Kirby McInerney LLP reminds investors that
NEW YORK, July 20, 2021 (GLOBE NEWSWIRE) – Law firm Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in U.S. District Court for the Eastern District of Virginia on behalf of those who acquired the James River Holdings, Ltd. group (âJames Riverâ or the âCompanyâ) (NASDAQ: JRVR) from August 1, 2019 to May 5, 2021 inclusive (the âClass Periodâ). Investors have until September 7, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
James River is a holding company that owns and operates a group of specialty insurance and reinsurance companies. Its largest segment, Surplus and Surplus Line (âE&Sâ) insurance, focuses on policyholders who are generally unable to purchase insurance from standard line insurers due to perceived risks associated with their business. . James River’s Commercial Auto division is one of these E&S Lines segments. In 2014, James River strengthened its commercial automotive division by underwriting a new type of insurance policy that covered Rasier LLC (“Rasier”), a subsidiary of ride-sharing company Uber Technologies, Inc. (in conjunction with Rasier, ” Uber â)
On July 31, 2019, James River issued a press release which assured investors that James River was sufficiently reserved against its Uber policies and that the defendants were “comfortable” with James River’s E&S Lines reservations.
On October 8, 2019, after the market closed, James River announced that it had given notice of early cancellation of all issued policies to its largest client, Rasier. Following this news, James River’s share price fell $ 11.06 per share, or about 22.6%, from $ 48.94 per share to close at $ 37.88 per share on the 9th. October 2021.
On May 5, 2021, the company announced its financial results for the first quarter of 2021, reporting “unfavorable development in the commercial automobile sector of $ 170 million, mainly due to a previously canceled account which has been in liquidation since 2019” . Following this news, James River’s share price fell $ 12.27 per share, or approximately 26.39%, from $ 46.50 per share to $ 34.23 per share on May 6, 2021. .
The lawsuit alleges that, throughout the Class Period, the Defendants made false and / or misleading statements and / or failed to disclose that: (1) James River did not make sufficient reservations for his Uber policies; (2) James River used incorrect methodology to establish reservations that significantly underestimated his true exposure to Uber claims; (3) as a result, the Company was forced to increase its unfavorable reserves over the following quarters, even after the cancellation of the Uber policies; and (4) as a result of the foregoing, the Defendants’ statements regarding the affairs, operations and prospects of James River were materially false and / or misleading and / or lacked reasonable basis.
If you have purchased or acquired common shares of James River, have any information or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by completing this contact form, to discuss your rights or interests in these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.
Kirby McInerney LLP
Thomas W. Elrod, Esq.