AmTrust Financial Services, Inc (Preferred Shares) Investor Securities Class Action Lawsuit 08/29/2019

If you purchased a significant amount of shares of AmTrust Financial Services, Inc (Preferred Shares)) between January 22, 2018, through January 18, 2019, you have certain options and for certain investors are short and strict deadlines running. Deadline: October 29, 2019. AmTrust Financial Services, Inc (Preferred Shares) investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Amtrust Financial Services
Case Name: 
Amtrust Financial Services Shareholder Class Action Lawsuit 08/29/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: AFSI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/29/2019
Class Period Begin: 
01/22/2018
Class Period End: 
01/18/2019
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
10/29/2019
Summary: 

An investor in preferred shares of AmTrust Financial Services, Inc filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by AmTrust Financial Services, Inc., Barry D. Zyskind, George Karfunkel, and Leah Karfunkel in connection with certain allegedly false and misleading statements made between January 22, 2018, through January 18, 2019.

New York based AmTrust Financial Services, Inc. provides property and casualty insurance in the United States and internationally.

The lawsuit was filed on behalf of investors in the following six series of preferred stock that AmTrust offered for sale to the public:

6.75% Non̻Cumulative Preferred Stock, Series A, consisting of 4,600,000 (plus a potential over-allotment option of 690,000) shares, at an offering price of $25 per share, for aggregate gross proceeds of $132,250,000, which were listed and traded on the NYSE beginning in June 2013

7.25% Non-Cumulative Preferred Stock, Series B, consisting of 115,000 shares, represented by 4,000,000 (plus a potential overallotment option of 600,000) depositary shares, each representing a 1/40th interest in a share of the Series B Preferred Stock, at an offering price of $25 per depositary share, for aggregate gross proceeds of $115,000,000, which were listed and traded on the NYSE beginning in June 2014

7.625% Non-Cumulative Preferred Stock, Series C, consisting of 92,000 shares, represented by 3,200,000 (plus a potential over-allotment option of 480,000) depositary shares, each representing a 1/40th interest in a share of the Series C Preferred Stock, at an offering price of $25 per depositary share, for aggregate gross proceeds of $92,000,000, which were listed and traded on the NYSE beginning in September 2014

7.50% Non-Cumulative Preferred Stock, Series D, consisting of 189,750 shares, represented by 6,600,000 (plus a potential overallotment option of 990,000) depositary shares, each representing a 1/40th interest in a share of the Series D Preferred Stock, at an offering price of $25 per depositary share, for aggregate gross proceeds of $189,750,000, which were listed and traded on the NYSE beginning in March 2015

7.75% Non-Cumulative Preferred Stock, Series E, consisting of 143,750 shares, represented by 5,000,000 (plus an over-allotment of 750,000) depositary shares, each representing a 1/40th interest in a share of the Series E Preferred Stock, at an offering price of $25 per depositary share, for aggregate gross proceeds of $143,750,000, which were listed and traded on the NYSE beginning in March 2016

6.95% Non-Cumulative Preferred Stock, Series F, consisting of 287,500 shares, represented by 10,000,000 (plus an over-allotment of 1,500,000) depositary shares, each representing a 1/40th interest in a share of the Series F Preferred Stock, at an offering price of $25 per depositary share, for aggregate gross proceeds of $287,500,000, which were listed and traded on the NYSE beginning in September 2016.

According to the complaint the plaintiff alleges that the defendants violated §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 during January 22, 2018 between January 18, 2019. More specifically, the plaintiff alleges that beginning on January 22, 2018, the defendants made repeated statements that, unlike AmTrust's common shares, which would be purchased by the company's controlling shareholder and delisted as part of a merger, the six series of publicly traded AmTrust preferred stock would continue to be listed on the New York Stock Exchange and would remain listed and outstanding.

Then, on January 18, 2019, less than two months after the close of the merger, AmTrust announced the delisting of all six series of its preferred stock.