NEW YORK, July 28, 2021 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR). A class action securities lawsuit has been filed on behalf of investors who purchased James River common stock between August 1, 2019 and May 5, 2021.
According to the complaint, in 2014, James River ramped up its Commercial Auto Division by underwriting a new type of insurance policy that covered Rasier LLC ("Rasier"), a subsidiary of the ride-sharing company Uber Technologies, Inc. (together with Rasier, "Uber").
On October 8, 2019 after the market closed, James River announced that it had delivered a notice of early cancellation, effective December 31, 2019, for all insurance policies issued to its largest customer, Uber. According to the complaint the Company would remain contracted to provide coverage for future claims related to the period the Company's Uber policies were in effect (known as "runoff"). The Company stated that "[t]his account has not met our expectations for profitability."
Following this news, James River's stock price declined $11.06 per share, about 23%, to close at $37.88 per share on October 9, 2019.
On May 5, 2021, after the market closed, James River disclosed an additional $170 million of unfavorable reserves related to the Uber policies. On a related conference call held the next day, James River’s CEO stated that the Company concluded “that using only our own loss experience in our paid and incurred reserve projections rather than the array of inputs that we had used in prior quarters, and giving greater weight to incurred methods would give us a better and more conservative estimate of ultimate losses on this account.”
Following this news, James River's stock price dropped $12.27 per share, more than 26%, from a closing price of $46.50 per share on May 5, 2021, to close at $34.23 per share on May 6, 2021.
If you are a member of the proposed Class, you may move the court no later than September 7, 2021 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 646-315-9003.
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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, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(646) 315-9003
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com