AmTrust Financial Services, Inc. (AFSI) Lawsuit Investigation
Our attorneys are investigating potential claims on behalf of purchasers of AmTrust Financial Services, Inc. (NASDAQ: AFSI) common stock or securities who allege that the company’s share prices were inflated as a result of accounting errors and material weaknesses in internal controls over financial reporting. The firm is also investigating whether AmTrust and certain of its executive officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
AmTrust Stock Losses?
If you purchased or otherwise acquired AmTrust shares between January 1, 2014 and March 16, 2017, and would like to speak privately with a securities attorney to contribute to or learn more about the investigation, fill out the form or contact the securities team directly at (800) 254-9493.
Announcement on Material Weaknesses in Internal Controls Prompts 19% Stock Drop
On February 27, 2017, AmTrust disclosed that it had
“identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016, specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization.”
On this news, AmTrust’s share price fell $5.32, or 19.23%, to close at $22.34 on February 27, 2017.
AmTrust to Restate Prior Financial Results- Share Price Falls Again
On March 16, 2017, AmTrust announced that it needed additional time to complete the consolidated financial statements and assessment of internal controls over financial reporting for the fiscal year ended December 31, 2016. It also revealed that, in connection with the preparation and audit of the financial statements, the Audit Committee of the AmTrust Board of Directors, concluded that the company’s previously issued consolidated financial statements for 2014 and 2015 as well as for the first three quarters of 2016 should be restated and should no longer be relied upon.
In addition, AmTrust reported that the certain of the company’s earnings and press releases and related communications should no longer be relied upon to the extent that they relate to periods covered by the upcoming restatement, as well as the company’s fourth quarter and fiscal 2016 earnings release dated February 27, 2017.
AmTrust also cautioned that the reports of the company’s former independent auditor, BDO USA LLP, on the company’s consolidated financial statements for 2014 and 2015, including its opinions on the effectiveness of internal control over financial reporting for such periods, likewise should no longer be relied upon.
On this news, AmTrust’s share price fell $4.03, or 18.65%, to close at $17.58 on March 17, 2017.
Gibbs Law Group LLP is one of the nation’s leading firms representing individual and institutional investors in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and has earned Tier-1 rankings and been named in the U.S. Lawyers – Best Law Firms list for four consecutive years.