NEW YORK, March 05, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that it is investigating the officers and directors of Kingstone Companies, Inc. (“Kingstone” or the “Company”) (NASDAQ: KINS) for potential breaches of fiduciary duties, waste of corporate assets, unjust enrichment and violations of the Securities Exchange Act of 1934 between March 14, 2018 through the present.
A securities class action complaint is pending in the United States District Court for the Southern District of New York (the “Securities Class Action”). The complaint in the Securities Class Action alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company did not adequately follow industry best practices related to claims handling; (2) as a result, the Company did not record sufficient claims reserves; (3) the Company lacked adequate internal control over financial reporting; and (4) Defendants’ positive statements about Kingstone’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. The complaint in the Securities Class Action also alleges that when the true details entered the market, investors suffered damages.
These allegations, if proven, may also give rise to a derivative action on behalf of current shareholders of Kingstone against certain officers and directors of the Company.
If you wish to discuss your rights or interests, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
