NEW YORK , May 26, 2021 /PRNewswire/ -- Prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") is investigating potential violations of the federal securities laws by James River Group Holdings, Ltd. (" James River " or the "Company") (NASDAQ: JRVR).
James River is an insurance holding company that owns and operates a group of specialty insurance and reinsurance companies. The Company operates in three segments: excess and surplus lines of insurance, specialty admitted insurance, and casualty reinsurance. James River maintains a commercial auto insurance line of business within its excess and surplus lines segment. Previously, the Company's largest customer was Rasier LLC ("Rasier"), a wholly owned subsidiary of Uber Technologies, Inc. ("Uber").
BLB&G's investigation is focused on whether James River misled investors about its insurance policies covering Uber ride-share drivers that were insured through Rasier, and the extent of the claims and losses incurred on those policies.
On October 8, 2019 , James River announced that it had canceled all insurance policies issued to Rasier and its affiliates, placing the entire account in runoff. As a result, the Company incurred a "[p]re-tax, adverse development" charge of up to $60 million for the third quarter of 2019. On this news, James River's stock price declined $11.06 per share, or approximately 23%.
Then, on May 5, 2021 , James River disclosed an additional $170 million "unfavorable development" charge as a result of a re-assessment of expected payouts on claims related to a "previously canceled account" that had been in runoff since 2019. As a result, the next day, James River also announced that it would price its previously announced underwritten public stock offering at $31 per share—representing a 33% discount from the Company's closing stock price on the previous day. On this news, James River's stock price declined $12.27 per share, or over 26%.
The investigation is being led by BLB&G partners Avi Josefson and Scott R. Foglietta . James River investors who suffered a loss and would like to learn more about our investigation, please contact BLB&G at (212) 554-4444 or via e-mail at inquiries@blbglaw.com .
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $33 billion on behalf of defrauded investors. More information about the firm can be found online at www.blbglaw.com .
This press release may be considered Attorney Advertising under the applicable law and ethics rules of some jurisdictions. Prior results do not guarantee a similar outcome.
Contact
Avi Josefson
Scott R. Foglietta
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44 th Floor
New York, New York 10020
(212) 554-4444
inquiries@blbglaw.com
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SOURCE Bernstein Litowitz Berger & Grossmann LLP