Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Feb. 27, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Argo Group International Holdings, Ltd. (“Argo” or “the Company”) (: ARGO) investors that a lawsuit filed on behalf of investors that purchased securities between February 13, 2018 and August 9, 2022.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: [email protected], to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On February 8, 2022, Argo issued a press release disclosing that its results for the fourth quarter of 2021 would be "negatively affected by adverse prior year reserve development and non-operating charges." Specifically, Argo expects "net adverse prior year reserve development to be in the range of $130 million to $140 million." The Company explained that the largest reserve increases were due to construction defect claims within Argo's U.S. Operations and reserve increases in the run-off segment.
On this news, Argo's stock price fell $7.11, or 13.7%, to close at $44.76 per share on February 9, 2022, thereby injuring investors.
Then, on August 8, 2022, Argo announced that it had entered into a loss portfolio transfer agreement with a subsidiary of Enstar Group Limited ("Enstar") pursuant to which Argo would retain a loss corridor of $75 million up to $821 million. An analyst noted that the Company faced "additional uncertainties," as this loss corridor retention "could act as overhang on the outlook for the next 12-24 months."
On this news, Argo's stock fell $9.12, or 28.3%, to close at $23.10 per share on August 10, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Argo's reserves were wholly inadequate and its underwriting standards were not prudent as was represented; (2) Argo had dramatically changed its underwriting policies on certain U.S. construction contracts as far back as 2018; (3) these policies were underwritten outside of the Company's "core" business including in certain states and for certain exposures that were far riskier than investors understood and that the Company no longer would service moving forward; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
[email protected]
310-692-8883
www.portnoylaw.com
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