Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/markel-corporation/) today announced that a class action has been commenced on behalf of purchasers of Markel Corporation (NYSE:MKL) securities during the period between July 26, 2017 and December 6, 2018 (the Class Period). This action was filed in the Southern District of New York and is captioned Cohen v. Markel Corporation, et al., No. 19-cv-2133.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Markel securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investors ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from January 11, 2019. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs counsel, Mary K. Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/markel-corporation/.
The complaint charges Markel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Markel is a holding company that, through its subsidiaries, markets and underwrites specialty insurance products and programs.
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Companys business, operations and financial results. Specifically, defendants failed to disclose that: (i) the Company lacked effective reporting controls and was not reporting its financial results in compliance with Generally Accepted Accounting Principles; (ii) the Companys Markel CATCo Investment Management Ltd. (MCIM) subsidiary was not appropriately recording loss reserves; (iii) MCIMs loss reserves would need to be adjusted and/or restated; and (iv) as a consequence, the Company would be subjected to increased regulatory scrutiny. As a result of this information being withheld from the market, Markel securities traded at artificially inflated prices during the Class Period, with the price of the Companys stock reaching a high of more than $1,200 per share.
On December 6, 2018, Markel disclosed that it had been contacted by the U.S. and Bermuda authorities on November 30, 2018 regarding loss reserves recorded in late 2017 and early 2018 at MCIM and its subsidiaries. On this news, the Companys share price fell $99.70 per share, or more than 8%, to close at $1,048.23 per share on December 7, 2018.
Thereafter, on January 18, 2019, Markel disclosed that it had terminated the employment of its two top executives at MCIM, and on February 5, 2019, Markel disclosed that it was writing off 100% of “ and taking an impairment charge on the entire $179 million being carried on its books for “ the goodwill and intangible assets of the [MCIM] reporting unit, reducing their carrying value to zero.
Plaintiff seeks to recover damages on behalf of all purchasers of Markel securities during the Class Period (the Class). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is a national law firm representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also advocates for corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Mary K. Blasy, 800-449-4900