The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) securities during the period from August 7, 2023 through November 7, 2023 (the “Class Period”). Investors have until January 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 7, 2023, James River announced its third quarter 2023 financial results, wherein the Company disclosed that it had identified an accounting error for reinstatement premium on a specialty casualty reinsurance treaty in its Excess & Surplus Lines segment from the Company’s previous financial statement. The error resulted in overstatements of net income of $7.8 million and $10.4 million for the three and six months ended June 30, 2023, respectively, as well as understatements of ceded written premium, and overstatements of net written premium and net earned premium of $9.4 million and $12.3 million for the three and six months ended June 30, 2023, respectively. Moreover, James River identified a material weakness in its internal control over financial reporting. On this news, the price of James River shares declined by $0.99 per share, or approximately 7%, from $14.14 per share to close at $13.15 on November 8, 2023. The following day, the price of James River shares declined by $4.31 per share, or approximately 32.77%, from $13.15 per share to close at $8.84 on November 9, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) James River lacked effective internal controls regarding the recognition of reinstatement premiums for reinsurance; (ii) as a result, the Company overstated its net income; and (iii) the Company was reasonably likely to restate its financial results.
If you purchased or otherwise acquired James River securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
