SAN DIEGO, March 2, 2019 /PRNewswire/ -- Johnson Fistel, LLP announces that it has filed
a class action on behalf of purchasers of Maiden Holdings,
Ltd. ("Maiden") (NASDAQ: MHLD) common stock during the period
between March 4, 2014 and
November 9, 2018 (the "Class
Period").
The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Maiden common stock during the Class Period
to seek appointment as lead plaintiff. A lead plaintiff acts on
behalf of all other class members in directing the litigation. The
lead plaintiff can select a law firm of its choice. An investor's
ability to share in any potential future recovery is not dependent
upon serving as lead plaintiff. If you wish to serve as lead
plaintiff, you must move the Court no later April 12, 2019. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact Jim
Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing,
please include a phone number. Additionally, you can
[Click here to join this action]. There is no cost or obligation to
you.
The complaint alleges that during the Class Period, defendants
misrepresented the quality and nature of Maiden's underwriting and
risk management policies and practices and the risks of its
reinsurance portfolio. In particular, defendants misleadingly
claimed that they were subjecting AmTrust's insurance portfolio to
robust analysis and cross-checks to ensure that the Company had
appropriately priced the risk of reinsuring AmTrust's insurance
portfolio. In truth, the Company had failed to employ sufficient
underwriting and risk management protocols and had largely
abdicated its responsibility to ensure that its AmTrust Reinsurance
segment priced policies commensurate with the risk assumed by the
Company. As a result of defendants' misrepresentations, the price
of Maiden stock was artificially inflated during the Class Period
to a high of $18.85 per share.
On February 27, 2018, Maiden
reported a net loss of $133.6 million
and a net adverse development of $171
million stemming from the Company's workers' compensation
line of its AmTrust Reinsurance segment and from two accounts in
its commercial auto line of business within the Diversified
Reinsurance segment. On this news, the price of Maiden common stock
fell 16% to close at $6.00 per share
on February 28, 2018. On August 9, 2018, Maiden announced its financial
results for the quarter ended June 30,
2018, revealing that it had continued to sustain losses,
suffering a net loss of $5.9 million
for the quarter, and disclosing that Maiden had suffered an adverse
prior year loss development of $28.4
million in its AmTrust Reinsurance segment. The Company also
revealed that its CEO and CFO would be retiring. On this news, the
price of Maiden common stock fell 41% to close at $4.40 per share on August
9, 2018.
Then, on November 9, 2018, Maiden
announced its financial results for the quarter ended September 30, 2018, including a massive
$308.8 million net loss and a
$210.4 million adverse prior year
loss development in just its AmTrust segment. The Company also
revealed that the sale of Maiden's business assets had resulted in
an impairment loss of $74.2 million.
Following this news, the price of Maiden common stock fell nearly
32% to close at $2.40 per share on
November 12, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers
of Maiden common stock during the Class Period between March 4, 2014 and November
9, 2018. There is no cost or obligation to you.
About Johnson Fistel,
LLP:
Johnson Fistel, LLP is a nationally
recognized shareholder rights law firm with offices in California, New
York, and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit
https://www.johnsonfistel.com. Attorney advertising. Past results
do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
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SOURCE Johnson Fistel, LLP