Wolf Popper LLP, the Court-appointed Lead Counsel and Class Counsel in a federal securities fraud action against the insurance holding company AmTrust Financial Services, Inc., has reached a settlement, which, if approved, would resolve the litigation in exchange for a cash payment of $13,000,000 for the benefit of the certified class. The lawsuit, on behalf of purchasers of AmTrust preferred stock between January 22, 2018 and January 18, 2019, alleges that AmTrust and three of its directors falsely assured investors that, unlike AmTrust’s common shares, which would be purchased and delisted as part of a take-private merger, AmTrust preferred stock would continue to be listed on the New York Stock Exchange.
The settlement follows i) an August 14, 2020, Opinion and Order, where United States District Court Judge Katherine Polk Failla denied the defendants’ motion to dismiss, finding that the complaint had sufficiently articulated a “classic bait and switch,” and ii) a February 3, 2022 Opinion and Order granting the plaintiff’s class certification motion, where Judge Failla, among other things, appointed Wolf Popper as Class Counsel, finding that it "is an experienced law firm that has litigated similar securities class actions in the past" and had “worked diligently" with its client "to initiate and prosecute this action."
The Court has set a final hearing to determine whether to approve the settlement, which will take place on November 16, 2022 at 3p.m. at the Thurgood Marshall U.S. Courthouse, 40 Foley Square, New York, NY 10007. Class members will be notified of the settlement pursuant to the schedule set forth in the Court’s July 21, 2022 Order preliminarily approving the settlement. For additional interim information, please contact Carl L. Stine or Adam J. Blander.
The case is Martínek v. AmTrust Financial Services, Inc., Case Number 19-cv-8030-KPF, in the U.S. District Court for the Southern District of New York.