BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) (AFSI) concerning possible violations of federal securities laws. The investigation focuses on the Company’s operations and financial performance.
AmTrust, through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. The investigation is related to a December 12, 2013, article issued by the GeoInvesting website, which alleges that the Company may be taking advantage of discrepancies in U.S. and Luxembourg accounting practices to minimize losses reported to the U.S. Securities and Exchange Commission. The article alleges that AmTrust is using reinsurance subsidiaries in Bermuda and Luxembourg to smooth losses of up to $410 million by improperly accounting for U.S. losses using Luxembourg GAAP. Among other things, GeoInvesting claims that “management is ceding/sending losses to offshore captive reinsurance companies it has purchased since 2009, but not disclosing these losses in SEC financial statements as required.” Following this news, the price of AmTrust shares fell more than 12%, to a closing price of $33.67 on December 12, 2013, on heavy trading volume.
If you purchased AmTrust shares, if you have information or would like to learn more about these claims, or if you 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@example.com, or visit our website at www.howardsmithlaw.com.
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