Shareholders Foundation, Inc.

Amtrust Financial Services, Inc. (NASDAQ:AFSI) Investor Alert: Lawsuit over Alleged Securities Laws Violations

A lawsuit was filed on behalf of investors in Amtrust Financial Services, Inc. (NASDAQ:AFSI) shares over alleged securities laws violations.NASDAQ:AFSI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 

San Diego, CA -- (ReleaseWire) -- 04/28/2014 -- An investor, who purchased shares of Amtrust Financial Services, Inc. (NASDAQ:AFSI), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Amtrust Financial Services, Inc. in connection with certain allegedly false and misleading statements made between February 15, 2011 and December 11, 2013.

If you purchased shares of Amtrust Financial Services, Inc. (NASDAQ:AFSI) you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Amtrust Financial Services, Inc. (NASDAQ:AFSI) between February 15, 2011 and December 11, 2013, that Amtrust Financial Services, Inc. and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or failed to disclose that Amtrust Financial Services, Inc. manipulated its loan loss reserves in order to inflate reported earnings, that Amtrust Financial Services, Inc. manipulated its deferred tax liabilities, that Amtrust Financial Services, Inc. underestimated the discount rates for its life settlement contracts in an effort to inflate the Company's reported assets and total stockholder's equity, that Amtrust Financial Services, Inc. lacked adequate internal and financial controls, and that as a result of the foregoing, Amtrust Financial Services, Inc. 's statements were materially false and misleading at all relevant times.

Amtrust Financial Services, Inc. reported that its annual Total Revenue rose from $740.21 million in 2009 to over $1.86 billion in 2012 and that its respective Net Income increased from $103.22 million to $177.28 million.

On December 12, 2013, a report was published that alleged that Amtrust Financial Services, Inc. has long exaggerated its true financial condition by, among other things, excluding losses of its wholly-owned subsidiaries in its SEC filings, failing to disclose a total of $276.9 million in losses transferred to its Luxembourg subsidiaries from 2009 to 2012, mismarking its life settlement contracts by using overly aggressive assumptions relative to its peers despite records showing Amtrust Financial Services, Inc. holds many policies that are likely worthless, and stating different accounts in its press releases than those reported in SEC filings. The report also raised numerous other red flags of fraud at Amtrust Financial Services, Inc. that called into question the veracity of AmTrust’s public disclosures to investors.

The same day, Amtrust Financial Services, Inc. issued a statement and reported strong financial outlook. Amtrust Financial Services, Inc. said that the fundamental outlook for the Company remains positive and is responding to negative comments produced by a report circulated by parties that have a vested interest in the common shares of Company declining in value. Shares of Amtrust Financial Services, Inc. declined from over $41.81 per share on November 29, 2013 to as low as $28.62 per share on December 18, 2013.

Those who purchased shares of Amtrust Financial Services, Inc. (NASDAQ:AFSI) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com