Wolf Popper LLP Files a Securities Class Action Lawsuit Against AmTrust Financial Services, Inc.

Sep 18, 2019


NEW YORK,  -- Wolf Popper LLP filed a securities class action lawsuit in the U.S. District Court for the Southern District of New York against AmTrust Financial Services, Inc. ("AmTrust"), Barry D. ZyskindGeorge Karfunkel, and Leah Karfunkel (together, "Defendants").  The case, No. 1:19-cv-08030-KPF, asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 on behalf of investors who purchased any of the six series of AmTrust's preferred shares during January 22, 2018, through January 18, 2019, and were damaged thereby.

Beginning on January 22, 2018, Defendants made repeated statements that, unlike AmTrust's common shares, which would be purchased by the company's controlling shareholder and delisted as part of a merger, the six series of publicly traded AmTrust preferred stock would continue to be listed on the New York Stock Exchange and would remain listed and outstanding.  On January 18, 2019, less than two months after the close of the merger, AmTrust announced the delisting of all six series of its preferred stock.

The very next trading day following the announcement, the prices of all six series of the preferred stock dropped by almost 40%, losing hundreds of millions of dollars in value.

Judge Katherine Polk Failla has entered an order requiring that "any party that wishes to be appointed as lead plaintiff of the purported class serve and file a motion in that regard on or before October 29, 2019.  Any opposition…shall be served and filed on or before November 12, 2019." If you are a member of the proposed Class and wish to serve as Lead Plaintiff, you must file a motion with the Court. A lead plaintiff is a representative party acting on behalf of other Class members in directing the litigation. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.

Wolf Popper has successfully recovered billions of dollars for defrauded investors.  Eight Wolf Popper attorneys were named Super Lawyers or Rising Stars in the 2019 Super Lawyers New York City Metro Edition, including Wolf Popper partner Carl Stine, who was also included in the Super Lawyers Top 100 List for the New York City Metro area.  More information about Wolf Popper and the biographies of its attorneys can be found on the firm's website at www.wolfpopper.com.

If you wish to discuss this action, receive a copy of the complaint, or have any questions concerning this notice or your rights or interests, please contact Carl Stine at (212) 759-4600 or cstine@wolfpopper.com.

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