LOS ANGELES, May 06, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Hallmark Financial Services, Inc. (“Hallmark” or the “Company”) investors that acquired Hallmark securities (NASDAQ: HALL) between March 5, 2019 and March 17, 2020.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email, to discuss their legal rights, or click here to join the case via the www.portnoylaw.com
On March 2, 2020, Hallmark revealed its decision to "exit its Binding Primary Auto business." In one day, Hallmark's share price fell $2.10, to close at $12.23 per share. Then, on March 11, 2020, Hallmark announced that it had fired its public accounting firm over "a disagreement," causing the share price to fall nearly 30%, to close at $5.71 per share. Then on March 17, 2020, Hallmark filed a letter with the SEC indicating that the former public accounting firm had "expanded significantly the scope of its audit on January 31, 2020," and on this news Hallmark’s shares fell to $2.38 per share.
The lawsuit alleges that the Company misled investors through its public statements, specifically, that: (1) the Company lacked effective internal controls over accounting and financial reporting related to reserves for unpaid losses; (2) the Company improperly accounted for reserve for unpaid losses and loss adjustment expenses related to its Binding Primary Commercial Auto business; (3) as a result, Hallmark Financial would be forced to report a $63.8 million loss development for prior underwriting years; (4) as a result, Hallmark Financial would exit from its Binding Primary Commercial Auto business; and (5) as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. According to the suit, these true details were disclosed by a market research firm.
Please visit our website to review more information and submit your transaction information. If you suffered a loss you have until July 6, 2020 to request that the Court appoint you as lead plaintiff.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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