A financial services company was recently at the center of a securities class action claim after shareholders petitioned a law office to look into potential securities law violations.
Law firm Pomerantz, LLP, filed the litigation against AmTrust Financial Services, Inc., in the U.S. District Court for the Southern District of New York. This lawsuit includes all shareholders who purchased stock in the company during the class period between Feb. 15, 2011, and Dec. 11, 2013. AmTrust Financial Services' business leaders were alleged to have violated the Securities Exchange Act, specifically Sections 10(b), 20(a) and Rule 10b-5.
The company's leaders allegedly made multiple statements that were either false or otherwise misleading regarding its business practices. These did not explain that the loss reserves for its loans were manipulated to make its earnings seem higher, while its deferred tax liabilities were also inaccurate, among other related issues.
It is possible for shareholders to apply for the lead plaintiff position, but they must speak with the court by April 7, 2014, as well as file the proper paperwork. However, this isn't a necessary action for shareholders who want to collect in the event of any returns that occur by the pending ruling.
In order to read more about the case, visiting the law firm's website may be helpful, as it has a copy of the lawsuit. For those who want more information regarding the process, contacting the firm directly may be the best option. Robert Willoughby is available to field questions, and he can be contacted by telephone or email. Any shareholders who send an email to the law office should leave their telephone number, mailing address and the number of company shares they own.
Second lawsuit filed
Another law firm explained that it filed a class action lawsuit against AmTrust Financial Services in the same court for many of the aforementioned reasons.
The Rosen Law Firm, P.A., announced that it filed litigation on behalf of shareholders due to allegations related to federal securities laws.
Shareholders also have an ability to speak with this law firm to gain more information on the lawsuit. Speaking with both Phillip Kim or Kevin Chan is best, and they can be reached by telephone or email. The office's website also has an option to join the class action.