|Case Leaders:||Scott R. Foglietta, Avi Josefson|
Investors who suffered a loss and would like to learn more, click here to contact us.
On May 26, 2021 Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) announced it is investigating potential violations of the federal securities laws by James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR). On July 9, 2021, a class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against James River and certain of its senior executives. The deadline to seek appointment as Lead Plaintiff is September 7, 2021.
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 by submitting the form on the right-hand side of this page, or by calling (212) 554-4444.
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