Cases & Investigations
AmTrust Financial Services, Inc. - Preferred Stock Litigation
Type: Resolved Cases
Case Number: 19-cv-08030-KPF
Stock Symbol: Former NYSE: AFSI-PA, AFSI-PB, AFSI-PC, AFSI-PD, AFSI-PE, AFSI-PF
Court: United States District Court for the Southern District of New York
Settlement Website: http://AmtrustPreferredStockLitigation.com
Settlement Amount: $13,000,000
Wolf Popper LLP served as the Court-appointed Lead Counsel and Class Counsel in this federal securities fraud action against the insurance holding company AmTrust Financial Services, Inc. The litigation, on behalf of purchasers of AmTrust preferred stock between January 22, 2018 and January 18, 2019, resolved in 2022 for $13,000,000.00. The lawsuit alleged that AmTrust and three of its directors falsely assured investors that, unlike AmTrust’s common shares, which would be purchased and delisted as part of a take-private merger, AmTrust preferred stock would continue to be listed on the New York Stock Exchange.
The settlement, reached following extensive fact and expert discovery, followed i) an August 14, 2020, Opinion and Order, where United States District Court Judge Katherine Polk Failla denied the defendants’ motion to dismiss, finding that the complaint had sufficiently articulated a “classic bait and switch,” and ii) a February 3, 2022 Opinion and Order granting the plaintiff’s class certification motion, over the defendants’ objection.
On November 16, 2022, Judge Failla approved the $13 million settlement as fair, reasonable and adequate to the class, finding, among other things, that Wolf Popper “conducted the Litigation and achieved the Settlement with skill, perseverance and diligent advocacy” and is “highly experienced in class action litigation and securities class action litigation.”
The now-resolved case is Martínek v. AmTrust Financial Services, Inc., Case Number 19-cv-8030-KPF, in the U.S. District Court for the Southern District of New York.
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