Law Offices of Howard G. Smith announces that a class action lawsuit has
been filed in the United States District Court for the Southern District
of New York on behalf of all purchasers of the securities of AmTrust
Financial Services, Inc. (“AmTrust” or the “Company”) (NASDAQ:AFSI)
between February 15, 2011 and December 11, 2013, inclusive (the “Class
Period”).
AmTrust, through its subsidiaries, underwrites and provides property and
casualty insurance in the United States and internationally. The
Complaint alleges that throughout the Class Period defendants
misrepresented and/or failed to disclose that the Company: (1)
manipulated its loan loss reserves in order to inflate reported
earnings; (2) manipulated its deferred tax liabilities; (3)
underestimated the discount rates for its life settlement contracts in
an effort to inflate the Company’s reported assets and total
stockholder’s equity; and (4) lacked adequate internal and financial
controls.
On December 12, 2013, a report published by Geoinvesting alleged certain
accounting improprieties at AmTrust, including manipulation of the
Company’s loan loss reserves and manipulation of the Company’s deferred
tax liabilities, and that the Company had underestimated the discount
rates for its life settlement contracts. Following this news, AmTrust
securities declined $4.63 per share, or 12%, to close at $33.67 per
share on December 12, 2013.
If you purchased AmTrust securities during the Class Period, you have
until April 7, 2014, to move the Court to serve as lead plaintiff;
however, you must meet certain legal requirements. To be a member of the
Class you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you wish to learn more about this action, please contact
Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070
Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at
(215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com,
or visit our website at http://www.howardsmithlaw.com.
Copyright Business Wire 2014