Johnson Fistel, LLP Files Class Action Suit against Maiden Holdings, Ltd.
SAN DIEGO- PRNewswire —March 2, 2019
Johnson Fistel, LLP announces that it has filed a class action on behalf of purchasers of Maiden Holdings, Ltd. (“Maiden”) (NASDAQ: MHLD) common stock during the period between March 4, 2014 and November 9, 2018 (the “Class Period”).
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Maiden common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
If you wish to serve as lead plaintiff, you must move the Court no later April 12, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number. Additionally, you can [Click here to join this action]. There is no cost or obligation to you.
The complaint alleges that during the Class Period, defendants misrepresented the quality and nature of Maiden’s underwriting and risk management policies and practices and the risks of its reinsurance portfolio. In particular, defendants misleadingly claimed that they were subjecting AmTrust’s insurance portfolio to robust analysis and cross-checks to ensure that the Company had appropriately priced the risk of reinsuring AmTrust’s insurance portfolio. In truth, the Company had failed to employ sufficient underwriting and risk management protocols and had largely abdicated its responsibility to ensure that its AmTrust Reinsurance segment priced policies commensurate with the risk assumed by the Company. As a result of defendants’ misrepresentations, the price of Maiden stock was artificially inflated during the Class Period to a high of $18.85 per share.
On February 27, 2018, Maiden reported a net loss of $133.6 million and a net adverse development of $171 million stemming from the Company’s workers’ compensation line of its AmTrust Reinsurance segment and from two accounts in its commercial auto line of business within the Diversified Reinsurance segment. On this news, the price of Maiden common stock fell 16% to close at $6.00 per share on February 28, 2018. On August 9, 2018, Maiden announced its financial results for the quarter ended June 30, 2018, revealing that it had continued to sustain losses, suffering a net loss of $5.9 million for the quarter, and disclosing that Maiden had suffered an adverse prior year loss development of $28.4 million in its AmTrust Reinsurance segment. The Company also revealed that its CEO and CFO would be retiring. On this news, the price of Maiden common stock fell 41% to close at $4.40 per share on August 9, 2018.
Then, on November 9, 2018, Maiden announced its financial results for the quarter ended September 30, 2018, including a massive $308.8 million net loss and a $210.4 million adverse prior year loss development in just its AmTrust segment. The Company also revealed that the sale of Maiden’s business assets had resulted in an impairment loss of $74.2 million. Following this news, the price of Maiden common stock fell nearly 32% to close at $2.40 per share on November 12, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Maiden common stock during the Class Period between March 4, 2014 and November 9, 2018. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.