Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Maiden Holdings, Ltd. (NASDAQ: MHLD) (Maiden or the Company) securities between March 4, 2014 and November 9, 2018, inclusive (the Class Period). Maiden investors have until April 12, 2019 to file a lead plaintiff motion.
On November 9, 2018, Maiden revealed its financial results for the quarter ended September 30, 2018, including a significant $308.8 million loss and a $210.4 million adverse prior year loss development in its AmTrust segment. Maiden also stated that the sale of its business assets resulted in an impairment loss of $74.2 million. On this news, shares of Maiden fell nearly 32% to close at $2.40 per share on November 12, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) Maiden lacked adequate underwriting processes and risk management controls necessary to accurately price its reinsurance policies, set appropriate loss reserves and avoid excessive losses; (2) Maiden failed to take steps necessary to properly assess and cross check the insurance portfolio of AmTrust, its largest client and a related entity, to ensure that its reinsurance of AmTrusts portfolio was properly priced and did not expose Maiden to the risk of excessive losses; (3) Maiden failed to conduct appropriate independent reviews, actuarial analyses and audits of the policies underlying its AmTrust Reinsurance segment, which would have revealed that the risk of loss from these policies was significantly understated; (4) as a result of the foregoing, Maiden was subject to materially heightened risk of financial loss, reserve charges and diminished prospects; and (5) as a result, defendants statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased shares of Maiden, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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