SAN FRANCISCO, CA / ACCESSWIRE / November 28, 2022 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP recommends that Argo Group International Holdings, Ltd. ("Argo") (NYSE:ARGO) investors who bought or sold Argo common stock and suffered losses between February 13, 2018 and August 9, 2022 contact our securities fraud practice group attorneys immediately for details about the pending securities fraud class action against Argo. The deadline to apply to be a lead plaintiff is December 19, 2022.
Class Period: February 13, 2018 - August 9, 2022
Lead Plaintiff Motion Deadline: December 19, 2022
Case information: https://www.lieffcabraser.com/securities/argo/
Contact us: Email or text [email protected] or call 1-800-541-7358
The securities class action alleges that Argo made materially false and misleading statements and omissions concerning the Company's ability to set appropriate reserves, changing of its underwriting policies, and writing of policies outside of its "core" business.
The truth was partially disclosed on February 8, 2022, when Argo announced that its fourth quarter results for 2021 would be negatively impacted by $130 million to $140 million in prior year reserve development and non-operating charges. The Company revealed that that the largest reserve increases were related to construction defect claims within Argo's U.S. Operations, in addition to reserve increases in the Run-off segment. Argo also admitted that the prior year reserve increase for construction defect primarily related to the 2017 and prior underwriting years in business lines that had either been significantly remediated or discontinued. On this news, the price of Argo common stock fell $7.11, or 13.71%, to close at $44.76 per share on February 9, 2022.
On August 8, 2022, Argo announced that it had entered into a Loss Portfolio Transfer agreement with a wholly owned subsidiary of Enstar Group Limited covering a majority of the company's U.S. casualty insurance reserves. On August 10, 2022, a Raymond James analyst downgraded Argo's outlook and noted that Argo faced increasing uncertainty because it had taken on a $75 million loss corridor. On this news, the price of Argo's common stock declined $9.12 per share, or 28.3%, from an August 8, 2022 closing price of $32.22 to close at $23.10 per share on August 10, 2022.
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SOURCE: Lieff Cabraser Heimann & Bernstein