Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Atlas Financial Holdings (NASDAQ: AFH) in connection to alleged violations of securities laws by AFH. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Atlas Financial Holdings from March 13, 2017 until March 2, 2018.
The class action complaint specifically alleges that during the period in question, AFH might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company did not make use of internal controls to ensure the use of proper accounting practices, for instance, calculating some loss reserves; that the company had material weaknesses affecting its internal controls over financial reporting procedures; that consequently the company’s financial statements contained inaccuracies and misleading information, such as the understatement of some loss reserves; and that consequently the company’s statements about its business, operations and prospects during the relevant period. When the company published a press release on March 1, 2018, under the title “Atlas Financial Holdings Announces Preliminary 2017 Fourth Quarter and Year End Financial Results,” and announcing a substantial increase in its reserves, its share price declined 40.96%, or $7.70/share, closing at $11.10/share on March 2, 2018. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Atlas Financial Holdings is a financial company that describes its vision as “To always be the preferred specialty insurance business in any geographic areas where our value proposition delivers benefit to all stakeholders” and its mission as “To develop and deliver superior specialty insurance products and services to meet our customers’ needs with a focus on innovation and the effective use of technology and analytics to deliver consistent operating profit for the insurance businesses we own.” Its insurance offerings cover taxi services, car services, limousine services, paratransit, airport transit, and business auto services. The company trades on the Nasdaq exchange under the symbol AFH.