Wolf Popper LLP Prevails Against Motion to Dismiss in AmTrust Preferred Stock Securities Lawsuit
In an Opinion and Order dated August 14, 2020, United States District Court Judge Katherine Polk Failla denied the defendants’ motion to dismiss a securities fraud action prosecuted by Wolf Popper LLP on behalf of preferred stockholders of AmTrust Financial Services, Inc., a large insurance company.
The complaint filed by Wolf Popper described how AmTrust and three of its directors falsely assured the investing public that, unlike AmTrust’s common shares, which would be purchased and delisted as part of a merger in which these three directors would be taking the company private, AmTrust preferred stock would continue to be listed on the New York Stock Exchange.
In rejecting the defendants’ arguments, Judge Failla concluded that “[t]he fact of the matter is that, prior to the Merger, Defendants repeatedly assured investors that the preferred stock would remain listed, and then, less than two months after the transaction closed, decided to delist the preferred stock.” The Court found that the “professed reasons for delisting the stock…were known to the Individual Defendants before the Merger,” a fact “only strengthen[ing] Plaintiff’s argument this was a classic bait and switch.”
Read more about Judge Failla’s decision here.
The case is Martinek v. AmTrust Financial Services, Inc., Case Number 19-cv-8030-KPF, in the U.S. District Court for the Southern District of New York.
Wolf Popper is Lead Counsel.
Wolf Popper LLP Files a Securities Class Action Lawsuit Against AmTrust Financial Services, Inc.
NEW YORK, August 30, 2019
Wolf Popper LLP has filed a securities class action lawsuit in the U.S. District Court for the Southern District of New York against AmTrust Financial Services, Inc. (“AmTrust”), Barry D. Zyskind, George Karfunkel, and Leah Karfunkel (together, “Defendants”). The case, No. 1:19-cv-08030-KPF, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder on behalf of investors who purchased any of the six series of AmTrust’s preferred shares during the period January 22, 2018 through January 18, 2019, and were damaged thereby.
Beginning on January 22, 2018, 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. 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.
The very next trading day following the announcement, the prices of all six series of the preferred stock dropped by almost 40%, losing hundreds of millions of dollars in value.
If you are a member of the proposed Class, and wish to serve as Lead Plaintiff, you must file a motion with the Court no later than October 30, 2019. A lead plaintiff is a representative party acting on behalf of other Class members in directing the litigation. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Ten Wolf Popper attorneys were named Super Lawyers or Rising Stars in the 2018 Super Lawyers New York City Metro Edition, including Wolf Popper partner Carl Stine, who was included in the Super Lawyers Top 100 List for the New York City Metro area.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Carl Stine at (212) 759-4600 or email@example.com.
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