NEW YORK, July 29, 2021 / PRNewswire / – Pomerantz LLP is investigating claims on behalf of investors from James River Group Holdings, Ltd. (“James River“or the” Company “) (NASDAQ: JRVR). These investors are advised to contact Robert S. Willoughby To [email protected] or 888-476-6529, ext. 7980.
The investigation focuses on whether James River and some of its officers and / or directors have engaged in securities fraud or other illegal business practices.
[Click here for information about joining the class action]
In 2014, James River stepped up its commercial automotive division by underwriting a new type of insurance policy that covered Rasier LLC (“Rasier”), a subsidiary of ride-sharing company Uber Technologies, Inc. (along with Rasier, “Uber”).
After the market closes October 8, 2019, James River announced that it had delivered a notice of early termination, with effect December 31, 2019, for all insurance policies issued to Uber, although the Company would remain committed to providing coverage for future claims related to the period in which the Company’s Uber policies were in effect (known as “runoff” ). The Company stated that “[the Uber] account ha[d] did not meet our expectations for profitability. ”
In response to these developments, James river the share price has fallen $ 11.06 per share, or 22.59%, to close at $ 37.88 per share on October 9, 2019.
Then on May 5, 2021, James River disclosed another $ 170 million unfavorable reservations related to Uber policies. During a related conference call, James River revealed that the increase was due to a shift from “industry data, pricing data, experience data, average loss severity data and mixed methodologies” to “using only our own loss experience in our projections of paid and incurred reserves. . . . [to calculate] a better and more conservative estimate of the ultimate losses on this account. At the same time, in order to cover its losses, the Company announced that it was seeking to increase $ 175 million through a public offering of shares, the price of which was “the highest discount in the sector” according to Bloomberg.
On this news, James river the share price has fallen $ 12.27 per share, i.e. 26.38%, from a closing price of $ 46.50 per share on May 5, 2021, to close at $ 34.23 per share on May 6, 2021.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP