SAN DIEGO, Aug. 3, 2019 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP reminds investors that a class action lawsuit has been filed against National General Holdings Corp. (NGHC) ("National General") on behalf of all purchasers of common stock during the period between August 6, 2015 and August 9, 2017, inclusive (the "Class Period").
If you wish to serve as a lead plaintiff you must move the Court no later than September 23, 2019. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
Additionally, you can [click here to join this action]. There is no cost or obligation to you.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company was perpetrating a massive forced-placed collateral protection insurance ("CPI") scheme to fraudulently saddle its own customers with unwanted and unneeded automobile insurance policies that it had underwritten; (2) that the Company's illicit conduct in foisting unwanted and unneeded automobile insurance on its customers had resulted in some of the victims being declared delinquent, suffering adverse impacts to their creditworthiness, and having their cars improperly repossessed; (3) that the Company was exposed to an extreme risk of regulatory scrutiny, legal risks, and reputational harm as a result of its participation in the forced-placed CPI scheme; (4) that the Company had failed to maintain effective internal controls over its financial reporting, including by failing to maintain formal documentation sufficient to reasonably ensure the accuracy of internal reporting and accounting procedures across much of its business, including with respect to insurance policy premiums; (5) that the Company's reported quarterly revenues and policy premiums were in part the product of a fraudulent forced-placed insurance scheme and were therefore artificially inflated and unsustainable; and (6) that the Company had in fact lost substantial business with Wells Fargo because Wells Fargo had terminated the forced-placed CPI scheme after concluding it posed excessive reputational risk and legal exposure.
If you are a long-term shareholder of National General continuously holding shares before August 6, 2015, you may have standing to hold National General harmless from the alleged harm caused by the officers and directors of the Company by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing.
[click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
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