AP NEWS
ADVERTISEMENT
Press release content from Business Wire. The AP news staff was not involved in its creation.
Related topics
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of James River Group Holdings, Ltd. (JRVR) Investors

July 12, 2021 GMT

BENSALEM, Pa.--(BUSINESS WIRE)--Jul 12, 2021--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR ) common stock between August 1, 2019 and May 5, 2021, inclusive (the “Class Period”). James River investors have until September 7, 2021 to file a lead plaintiff motion.

Investors suffering losses on their James River investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

ADVERTISEMENT

On October 8, 2019, after the market closed, James River disclosed that it had delivered a notice of early cancellation of all policies issued to its largest customer, Rasier LLC.

On this news, the Company’s share price fell $11.06, or over 23%, to close at $37.88 per share on October 9, 2019, thereby injuring investors.

Then, on May 5, 2021, James River announced its first quarter 2021 financial results, reporting “$170.0 million of unfavorable development in Commercial Auto, primarily driven by a previously canceled account that has been in runoff since 2019.” According to Bloomberg, the Company announced that it was seeking to raise $175 million through public equity offering, which was priced at “the sector’s steepest discount ever.”

On this news, the Company’s share price fell $12.27, or 26%, to close at $34.23 per share on May 6, 2021, thereby injuring investors further.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) James River had not adequately reserved for its Uber policies; (2) James River was using an incorrect methodology for setting reserves that materially understated the Company’s true exposure to Uber claims; (3) as a result, James River was forced to increase its unfavorable reserves in subsequent quarters even after cancelling the Uber policies; and (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

ADVERTISEMENT

If you purchased James River common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, 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 www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210712005713/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2021.

PUB: 07/12/2021 01:43 PM/DISC: 07/12/2021 01:43 PM

http://www.businesswire.com/news/home/20210712005713/en