NEW YORK, NY / ACCESSWIRE / May 28, 2021 / Labaton Sucharow, a nationally ranked and award-winning shareholder rights law firm, is investigating potential securities violations against 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").
The 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%.
If you currently own stock or options in James River Group Holdings, Ltd. and want to receive additional information and protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at [email protected].
About the Firm
Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.
CONTACT:
David J. Schwartz
(800) 321-0476
[email protected]
SOURCE: Labaton Sucharow LLP