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Investor Alert: Kaplan Fox Announces Investigation Of AmTrust Financial Services, Inc.

NEW YORK, Feb. 27, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of AmTrust Financial Services, Inc. ("AmTrust" or the "Company") (AFSI).  Investors who purchased shares of AmTrust securities may be affected.

On Monday April 4, 2016, AmTrust disclosed that it had dismissed its independent public accounting firm, BDO USA, LLP, on April 1, 2016.

On February 27, 2017 before the market opened, AmTrust issued a press release reporting certain fourth quarter and full year 2016 financial results.  Among other things, AmTrust reported a decrease in net income due to a reserve charge of $65 million, or approximately $0.24 per diluted share, primarily related to strengthening of prior year loss and loss adjustment reserves in its Specialty Program segment.  Additionally, the Company disclosed that it would be filing for an extension of time to file its Form 10-K with the SEC for the year ended December 31, 2016, and that it had identified material weaknesses in its internal control over financial reporting "related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources with the organization."

Following the February 27, 2017 disclosures, the price of AmTrust's common shares declined by $5.32 per share, more than 19%, to close at $22.34 per share.

If you are an investor in AmTrust and would like to discuss our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 800-290-1952.  This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact:

Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: ffox@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com

 

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