Investigation Alert: Bernstein Litowitz Berger & Grossmann LLP Announces Investigation of James River Group Holdings, Ltd. and Encourages Investors to Contact the Firm
NEW YORK, May 26, 2021 /PRNewswire/ -- Prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") is investigating potential violations of the federal securities laws by James River Group Holdings, Ltd. ("James River" or the "Company") (NASDAQ: JRVR).
James River is an insurance holding company that owns and operates a group of specialty insurance and reinsurance companies. The Company operates in three segments: excess and surplus lines of insurance, specialty admitted insurance, and casualty reinsurance. James River maintains a commercial auto insurance line of business within its excess and surplus lines segment. Previously, the Company's largest customer was Rasier LLC ("Rasier"), a wholly owned subsidiary of Uber Technologies, Inc. ("Uber").
BLB&G's investigation is focused on whether James River misled investors about its insurance policies covering Uber ride-share drivers that were insured through Rasier, and the extent of the claims and losses incurred on those policies.
On October 8, 2019, James River announced that it had canceled all insurance policies issued to Rasier and its affiliates, placing the entire account in runoff. As a result, the Company incurred a "[p]re-tax, adverse development" charge of up to $60 million for the third quarter of 2019. On this news, James River's stock price declined $11.06 per share, or approximately 23%.
Then, on May 5, 2021, James River disclosed an additional $170 million "unfavorable development" charge as a result of a re-assessment of expected payouts on claims related to a "previously canceled account" that had been in runoff since 2019. As a result, the next day, James River also announced that it would price its previously announced underwritten public stock offering at $31 per share—representing a 33% discount from the Company's closing stock price on the previous day. On this news, James River's stock price declined $12.27 per share, or over 26%.
The investigation is being led by BLB&G partners Avi Josefson and Scott R. Foglietta. James River investors who suffered a loss and would like to learn more about our investigation, please contact BLB&G at (212) 554-4444 or via e-mail at [email protected].
About BLB&G
BLB&G is widely recognized worldwide as a leading law firm advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $33 billion on behalf of defrauded investors. More information about the firm can be found online at www.blbglaw.com.
This press release may be considered Attorney Advertising under the applicable law and ethics rules of some jurisdictions. Prior results do not guarantee a similar outcome.
Contact
Avi Josefson
Scott R. Foglietta
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-4444
[email protected]
SOURCE Bernstein Litowitz Berger & Grossmann LLP
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