SAN FRANCISCO, April 21, 2017 (GLOBE NEWSWIRE) — Hagens Berman Sobol Shapiro LLP reminds investors in AmTrust Financial Services Inc. (NASDAQ:AFSI) of the May 1, 2017 Lead Plaintiff deadline in the pending securities class action related to improper revenue recognition.
If you purchased or otherwise acquired securities of AFSI between March 2, 2015 and March 16, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/AFSI
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing [email protected].
On February 27, 2017 AmTrust disclosed it would not timely file its 2016 annual financial statements. The Company explained it “identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016, specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization.”
This news drove the price of AmTrust shares down over 15% during intraday trading on February 27, 2017.
On March 16, 2017, the Company disclosed it would restate certain historical financial statements and related disclosures to correct improperly recognized revenue and improperly expensed bonuses. In response, the price of AmTrust shares fell over 18% to close at $17.58 on March 17, 2017.
On April 4, 2017, the Company filed its Form 10-K disclosing material adjustments to correct its historical financial statements.
On April 11, 2017, The Wall Street Journal reported that an auditor clandestinely recorded conversations during an audit of the Company on behalf of the FBI and was cooperating as a whistleblower with the SEC.
“GAAP violations are serious matters. We’re concerned about the recently admitted accounting irregularities requiring the restatements and the damage inflicted on AFSI investors,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding AmTrust should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
CONTACT: Contact: Reed Kathrein, 510-725-3000