Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in CRM Holdings, Ltd. to Inquire About t
February 11 2010 - 11:54AM
Marketwired
Brower Piven, A Professional Corporation announces that a class
action lawsuit has been commenced in the United States District
Court for the Southern District of New York on behalf of purchasers
of the securities of CRM Holdings, Ltd. ("CRM Holdings" or the
"Company") (NASDAQ: CRMH) during the period between December 21,
2005 and November 5, 2008, inclusive (the "Class Period").
No class has yet been certified in the above action. Members of
the Class will be represented by the lead plaintiff and counsel
chosen by the lead plaintiff. If you wish to choose counsel to
represent you and the Class, you must apply to be appointed lead
plaintiff no later than April 6, 2010 and be selected by the Court.
The lead plaintiff will direct the litigation and participate in
important decisions including whether to accept a settlement and
how much of a settlement to accept for the Class in the action. The
lead plaintiff will be selected from among applicants claiming the
largest loss from investment in the Company during the Class
Period. You are not required to have sold your shares to seek
damages or to serve as a Lead Plaintiff. You may contact Brower
Piven (through hoffman@browerpiven.com or 410/415-6616) to answer
any questions you may have in that regard.
The complaint accuses the defendants of violations of the
Securities Exchange Act of 1934 by virtue of the Company's failure
to disclose during the Class Period that defendants and their
affiliates engaged in a fraudulent scheme and course of business to
grow membership in eight self-insured groups (the "Trusts")
previously administered by CRM by charging premiums below
commercial rates; that the membership growth inflated gross trust
revenues while reducing net paid premium income to the level that
the assets of the Trusts would become insufficient to cover
liabilities such that the Trusts would fall below "fully funded"
status; that to cover up the difference between assets and
liabilities, defendants and their affiliates disguised the true
financial conditions of the Trusts by engaging in certain
improprieties designed to result in minimal projected claims
liability, including under-reserving individual claims and
utilizing improper actuarial/accounting methods; and that
defendants and their affiliates provided the New York State
Workers' Compensation Board (WCB) with materially false and/or
misleading financial and actuarial reports for the Trusts which
reflected artificially reduced liabilities, all exposing the
Company to hundreds of millions of dollars in liabilities relating
to the under-funding of the Trusts. According to the complaint,
after the Company received a letter from the WCB indicating its
intention to initiate legal proceedings against the Company on
behalf of the Trusts related to CRM Holdings' actions while acting
as the administrator and broker of record for the Trusts, and,
again, after the Company reported its financial results for the
2008 fiscal third quarter and announced that during third quarter
the Company had approximately $2.5 million of loss reserve
increases that accrued in the first and second quarter of 2008, the
value of CRM's stock declined significantly.
If you have suffered a net loss for all transactions in CRM
Holdings, Ltd. securities during the Class Period (including shares
or possibly calls purchased during, but not sold until after the
end of the Class Period or possibly put options sold but not
covered until after the end of the Class Period), you may obtain
additional information about this lawsuit and your ability to
become a lead plaintiff by contacting Brower Piven at
www.browerpiven.com, by email at hoffman@browerpiven.com, by
calling 410/415-6616, or at Brower Piven, A Professional
Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153.
Attorneys at Brower Piven have combined experience litigating
securities and class action cases of over 40 years. If you choose
to retain counsel, you may retain Brower Piven without financial
obligation or cost to you, or you may retain other counsel of your
choice. You need take no action at this time to be a member of the
class.
CONTACT: Charles J. Piven Brower Piven, A Professional
Corporation Stevenson, Maryland 410/415-6616 Email Contact
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