LOS ANGELES, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming December 19, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Argo Group International Holdings, Ltd. (“Argo” or the “Company”) (: ARGO) common stock between February 13, 2018 and August 9, 2022, inclusive (the “Class Period”).
If you suffered a loss on your Argo investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/argo-group-international-holdings-ltd/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
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.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you purchased or otherwise acquired Argo securities during the Class Period, you may move the Court no later than December 19, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com
