SAN DIEGO, Aug. 04, 2021 (GLOBE NEWSWIRE) -- The James River Group class action lawsuit charges James River Group Holdings, Ltd. (NASDAQ: JRVR) and certain of James River Group’s top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of James River Group common stock between August 1, 2019 and May 5, 2021, inclusive (the “Class Period”). The James River Group class action lawsuit – Employees’ Retirement Fund of the City of Fort Worth dba Fort Worth Employees’ Retirement Fund v. James River Group Holdings, Ltd., No. 21-cv-00444 – was commenced on July 9, 2021 in the Eastern District of Virginia.
If you wish to serve as lead plaintiff of the James River Group class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the James River Group class action lawsuit must be filed with the court no later than September 7, 2021.
CASE ALLEGATIONS: In 2014, James River Group ramped up its Commercial Auto Division by underwriting a new type of insurance policy that covered Rasier LLC (“Rasier”), a subsidiary of the ride-sharing company Uber Technologies, Inc. (together with Rasier, “Uber”).
The James River Group class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) James River Group had not adequately reserved for its Uber policies; (ii) James River Group was using an incorrect methodology for setting reserves that materially understated James River Group’s true exposure to Uber claims; (iii) as a result, James River Group was forced to increase its unfavorable reserves in subsequent quarters even after cancelling the Uber policies; and (iv) consequently, defendants’ statements about James River Group’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On October 8, 2019, James River Group announced that it had delivered a notice of early cancellation for all insurance policies issued to Uber, though James River Group would remain contracted to provide coverage for future claims related to the period James River Group’s Uber policies were in effect (known as “runoff”). James River Group stated that “[the Uber] account ha[d] not met our expectations for profitability.” On this news, James River Group’s stock price declined more than 22%.
Then, on May 5, 2021, after alleged assurances to investors that the legacy contract posed no challenges, James River Group disclosed an additional $170 million of unfavorable reserves related to the Uber policies. On a related conference call, James River Group revealed that the increase was due to a change from using “industry data, pricing data, experience data, average claim severity data, and blended methodologies” to “using only our own loss experience in our paid and incurred reserve projections . . . [to calculate] a better and more conservative estimate of ultimate losses on this account.” Simultaneously, to cover its losses, James River Group announced that it was seeking to raise $175 million through a public equity offering, which was priced at “the sector’s steepest discount ever” according to Bloomberg. On this news, James River Group’s stock price fell an additional 26%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased James River Group common stock during the Class Period to seek appointment as lead plaintiff in the James River Group class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the James River Group class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the James River Group class action lawsuit. An investor’s ability to share in any potential future recovery of the James River Group class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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Robbins Geller Rudman & Dowd LLP
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J.C. Sanchez, 800-449-4900