Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Against James River Group Holdings, Ltd. – JRVR
RADNOR, Pa., Aug. 22, 2021 (GLOBE NEWSWIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in United States District Court for the Eastern District of Virginia v James River Group Holdings, Ltd. (NASDAQ: JRVR) (“James River”) on behalf of those who purchased or acquired James River common stock between August 1, 2019 and May 5, 2021, inclusive (the “Class Period”).
Deadline reminder: investors who bought or acquired James River common stock during the Class Action Period may, no 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]; Where 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 specialty 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. . 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 the ridesharing company Uber Technologies, Inc. (along with Rasier, “Uber”) ). Until then, ridesharing insurance only covered claims incurred while ride-sharing drivers transported passengers for Uber, leaving a void in coverage for accidents caused by ride-sharing drivers while they were on the move. did not provide rental transportation services but were still connected to Uber apps and available to accept a ride. Uber was James River’s biggest contract and accounted for over 25% of its premiums in 2019.
The Class Period begins August 1, 2019, the day after James River issued an after-hours press release stating an “unfavorable development of reserves of $ 2.3 million relative to the development unfavorable reserves of $ 2.2 million the previous year ”, which included $ 1.2 million of unfavorable reserves development in the E&S Lines segment. At the start of the Class Period, the Defendants assured investors that James River was sufficiently reserved against his Uber policies and that the Defendants were “comfortable” with James River’s E&S Lines reservations. However, after the market closed on October 8, 2019, James River announced that it had issued an early cancellation notice, effective December 31, 2019, for all insurance policies issued to Uber, although James River would remain under contract to provide coverage for the future. claims related to the time Uber policies were in effect. Throughout the litigation period, the defendants repeatedly assured investors that the old contract posed no problem for James River.
The truth came to light on May 5, 2021 when James River surprised the market by revealing an additional $ 170 million in unfavorable reserves related to Uber policies. In order to cover its losses, James River announced that it was seeking to raise $ 175 million through a public offer to purchase shares, which was priced “at the highest discount in the industry” according to Bloomberg.
In the wake of this news, James River’s share price fell $ 12.27 per share, or 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 litigation period, the defendants failed to disclose the following: (1) James River did not adequately book 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, James River was forced to increase its unfavorable reserves in subsequent quarters, even after canceling Uber’s policies; and (4) accordingly, the defendants’ statements about the affairs, operations and prospects of James River were materially false and misleading and / or lacked reasonable basis.
James River investors can, no 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 in the United States and around 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)