COMPANY |
James River Group Holdings, Ltd. |
COURT |
United States District Court for the Eastern District of Virginia |
CASE NUMBER |
21-cv-00444 |
JUDGE |
The Honorable David J. Novak |
CLASS PERIOD |
August 1, 2019 - May 5, 2021 |
SECURITY TYPE |
All Securities |
Case Background:
The Class Period commences on August 1, 2019, the day after James River issued a press release after market hours that reported “unfavorable reserve development of $2.3 million compared to unfavorable reserve development of $2.2 million in the prior year,” which included $1.2 million of unfavorable reserve development in the E&S Lines segment. At the beginning of the Class Period, the defendants assured investors that James River was adequately reserved against its Uber policies and that the defendants were “comfortable” with James River’s E&S Lines reserves. However, after the market closed on October 8, 2019, James River announced that it had delivered a notice of early cancellation, effective December 31, 2019, for all insurance policies issued to Uber, though James River would remain contracted to provide coverage for future claims related to the period the Uber polices were in effect. Throughout the Class Period, the defendants repeatedly assured investors that the legacy contract posed no challenges to James River.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) James River had not adequately reserved for its Uber policies; (2) James River was using an incorrect methodology for setting reserves that materially understated its true exposure to Uber claims; (3) as a result, James River was forced to increase its unfavorable reserves in subsequent quarters even after cancelling the Uber polices; and (4) as a result, the defendants’ statements about James River’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
Current Status of Case:
On January 26, 2024, the Court entered an order preliminarily approving the Settlement of the action and scheduled a Final Settlement Hearing on May 24, 2024.
The deadline to file a claim is June 25, 2024. If you have any questions or need further information about this settlement, you may go to the following website www.JamesRiverSecuritiesLitigation.com, or you can contact the claims administrator, A.B. Data, Ltd., at 1-877-495-0945.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.