CRM Holdings, Ltd. Hit by Investor Lawsuit

If you purchased the securities of CRM Holdings, Ltd. (NASDAQ:CRMH ) between December 21, 2005 and November 5, 2008, you have certain options and there are strict and short deadlines running. Deadline: April 05, 2010. Those CRMH 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): 
CRM Holdings
Case Name: 
CRM Holdings Class Action Lawsuit 02/22/2010
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: CRMH
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/05/2010
Class Period Begin: 
12/21/2004
Class Period End: 
11/05/2008
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/05/2010
Summary: 

An investor in CRM Holdings filed a lawsuit in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased the securities of CRM Holdings, Ltd. (NASDAQ:CRMH ) between December 21, 2005 and November 5, 2008, against CRM Holdings and others over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that CRM Holdings and certain of the Company's executive officers and directors violated federal securities laws by knowing or recklessly disregarding between December 21, 2005 and November 5, 2008, that their public statements concerning CRM Holdings' financial performance and prospects were materially false and misleading. On October 3, 2008, CRM Holdings disclosed that it had received a letter from the New York State Workers' Compensation Board indicating its intention to initiate legal proceedings against CRM Holdings on behalf of the Trusts related to CRM Holdings' actions while acting as the administrator and broker of record for the Trusts. On this news, over the next two days of trading, shares of CRM Holdings declined $0.61 per share, or 24.31%, to close on October 7, 2008 at $1.91 per share. Then, on November 5, 2008, CRM Holdings 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 would have otherwise been reflected in the first and second quarter of 2008. As a result of this news, so the lawsuit, over the following three days of trading, CRM Holdings shares declined $0.58 per share, or more than 36%, to close on November 7, 2008, at $1.03 per share, on high volume.

CRM Holdings, Ltd. is a provider of workers’ compensation insurance products. The Company’s main business activities include underwriting primary workers’ compensation policies, underwriting workers’ compensation reinsurance and excess insurance policies, and providing fee-based management and other services to self-insured entities. CRM Holdings, Ltd. reported in 2007 Total Revenue of $136.97million with a Net Income of $20.14million and in 2008 Total Revenue of $143.17million with a Net Loss of $1.50million. Shares of CRM Holdings, Ltd. (CRMH) recently traded at $0.58 per share, down from its 52weekHigh of $1.58 per share, $3.96 per share in August 2008, $7.52 per share in Feb 2008, and almost $15 per share in 2006.