AmTrust Financial Services (AFSI) Shareholder Alert – Peiffer Wolf Carr & Kane law firm Investigating Potential Securities Claims on Behalf of AmTrust Investors
AmTrust Financial Services, Inc. (AFSI) disclosed to its investors on February 27, 2017 that it had “identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016, specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization.” Following its announcement, AmTrust‘s share price fell $5.32, or 19.23%, to close at $22.34 on February 27, 2017.
AmTrust’s announcement may be accessed here.
AmTrust further announced on March 16, 2017 that it needed more time to finalize its consolidated financial statements and assessment of internal controls over financial reporting for the fiscal year ended December 31, 2016.
AmTrust also revealed that, in connection with the preparation and audit of the financial statements, its Board of Directors’ Audit Committee concluded that the company’s previously issued consolidated financial statements for 2014 and 2015 (including for each of the four quarters of 2015) as well as for the first three quarters of 2016 should be restated and should no longer be relied upon.
In addition, AmTrust disclosed that certain of the company’s earnings and press releases, and related communications, to the extent that they relate to periods covered by the upcoming restatement, as well as the company’s fourth quarter and fiscal 2016 earnings release dated February 27, 2017, should no longer be relied upon.
AmTrust also cautioned that the reports of BDO USA LLP, the company’s former independent auditor, on the company’s consolidated financial statements for 2014 and 2015, including its opinions on the effectiveness of internal control over financial reporting for such periods, likewise should no longer be relied upon. On this news, AmTrust’s share price fell $4.03, or 18.65%, to close at $17.58 on March 17, 2017.
AmTrust’s March 16, 2017 announcement may be accessed here.
What Investors Can Do
If you are an AmTrust (AFSI) investor and would like to obtain additional information about this case or would like to discuss this matter or your rights, please visit www.securitieslitigators.com and complete the contact form, or contact Jason Kane or James Booker toll free at (585) 310-5140 or by e-mail at firstname.lastname@example.org.
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