Meadowbrook Insurance Group, Inc. (NYSE: MIG)Sun, 08/18/2013 - 12:53 — Webmaster
Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Meadowbrook Insurance Group, Inc. (NYSE: MIG) common stock during the period between July 30, 2012 and August 8, 2013, inclusive (the “Class Period”).Join the class action
Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/mig) announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Meadowbrook Insurance Group, Inc. ("Meadowbrook" or the "Company") (NYSE: MIG) common stock during the period between July 30, 2012 and August 8, 2013, inclusive (the “Class Period”).
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/mig.
The complaint charges Meadowbrook and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Meadowbrook Insurance Group, Inc. operates as a commercial insurance underwriter and insurance administration services company in the United States.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company's financial stability was severely impaired; (2) the Company's reported goodwill was materially inflated; (3) the Company's capital position was not strong enough to support its ongoing insurance operations in a sustainable fashion; (4) the Company was in breach of its financial covenants applicable to its credit facilities; (5) the Company lacked adequate internal and financial controls, including controls over outstanding claims, asset impairment charges and maintenance of an appropriate capital position; and (6) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On October 19, 2012, A.M. Best Company ("A.M. Best") announced that it had put the financial strength rating and issuer credit rating of Meadowbrook's Insurance Company Subsidiaries, the Company's main operating subsidiary, under review with negative implications. On this news, the Company's shares fell $1.61 per share or over 20% to close on October 19, 2012 at $6.18 per share.
Then, on August 2, 2013, A.M. Best Company downgraded the Company's financial strength rating from "A-" (Excellent) to "B++" (Good) with a "stable" outlook. On this news, Meadowbrook securities declined $0.80 per share or over 10%, to close at $6.74 per share on August 5, 2013.
On August 9, 2013, Meadowbrook announced that it was unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 within the prescribed time period. On this news, Meadowbrook shares declined a further $0.19 per share or over 2%, to close at $6.60 per share on August 12, 2013.
Finally, on August 14, 2013, the Company announced that it would take a non-cash impairment of goodwill of $115.4 million in the three months ended June 30, 2013. The impairment wiped out nearly all of the Company's goodwill on its balance sheet, and caused the Company to violate "financial covenants" applicable to the certain credit facilities. On this news the Company's shares fell $0.20 per share to $6.36 per share on August 15, 2013, a decline of 3.05%.
If you are a member of the class, you may, no later than October 15, 2013, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.