DENVER, CO / ACCESSWIRE / October 8, 2019 / Franklin D. Azar & Associates, P.C. (the "Azar Law Firm") announces that it is investigating a lawsuit filed against AmTrust Financial Services, Inc. ("AmTrust") on behalf of AmTrust shareholders (OTC PINK:AFSIA, AFSIB, AFSIC, AFSIM, AFSIN, AFSIP) alleging that AmTrust and certain of its officers violated the federal securities laws. AmTrust investors who have purchased at least 30,000 shares of AmTrust Preferred Stock are encouraged to contact the Azar Law Firm at [email protected] or call 844-241-9475 to learn more about the case.
Interested AmTrust shareholders have until October 29, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The lawsuit alleges that in connection with AmTrust's merger announced in 2018, AmTrust informed investors that, unlike AmTrust's common shares, which were being acquired in the Buyout, the six series of publicly traded AmTrust preferred stock were not being purchased in the Merger. The lawsuit alleges that AmTrust misleadingly stated the preferred shares would continue to be listed on the NYSE and would remain listed and outstanding following the Merger.
Contrary to these numerous public representations, less than two months following the close of the Merger, on January 18, 2019, AmTrust announced it would delist all six series of AmTrust preferred stock from the NYSE. AmTrust attempted to legitimize the delisting based on the contrived excuse "that the administrative costs and burdens associated with maintaining the listings on the NYSE and the registration exceed the benefits" and that there was a new "ownership structure" due to the Merger. Since these costs, burdens, and new ownership structure were known or had to have been known during the entire time defendants were publicly proclaiming that the preferred stock would remain listed, the only logical conclusion is that defendants never intended or were deliberately reckless when making their public statements that the preferred stock would remain listed on the NYSE.
The prices of the preferred stocks dropped by almost 40% the very next trading day, with the preferred stocks losing hundreds of millions of dollars in value. The class action lawsuit seeks to recover on behalf of purchasers of the preferred stock between January 22, 2018 and January 18, 2019.
If you have purchased at least 30,000 shares of AmTrust Preferred Stock, you may have a claim for damages, and you may be eligible to seek a position in the case as a lead plaintiff. Please contact the Azar Law Firm's shareholder rights team at [email protected] or call 844-241-9475.
The Azar Law Firm's securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. The Azar Law Firm is working with Thornton Law Firm LLP in investigating this action. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
SOURCE: Franklin D. Azar and Associates P.C.