Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Argo Group International Holdings, Ltd. (“Argo” or the “Company”) (NYSE: ARGO) common stock between February 13, 2018 and August 9, 2022, inclusive (the “Class Period”). Argo investors have until December 19, 2022 to file a lead plaintiff motion.
Investors suffering losses on their Argo investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On February 8, 2022, Argo issued a press release disclosing that its results for the fourth quarter of 2021 would be “negatively affected by adverse prior year reserve development and non-operating charges.” Specifically, Argo expects “net adverse prior year reserve development to be in the range of $130 million to $140 million.” The Company explained that the largest reserve increases were due to construction defect claims within Argo’s U.S. Operations and reserve increases in the run-off segment.
On this news, Argo’s stock fell $7.11, or 13.7%, to close at $44.76 per share on February 9, 2022, thereby injuring investors.
Then, on August 8, 2022, Argo announced that it had entered into a loss portfolio transfer agreement with a subsidiary of Enstar Group Limited (“Enstar”) pursuant to which Argo would retain a loss corridor of $75 million up to $821 million. An analyst noted that the Company faced “additional uncertainties,” as this loss corridor retention “could act as overhang on the outlook for the next 12-24 months.”
On this news, Argo’s stock fell $9.12, or 28.3%, to close at $23.10 per share on August 10, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or 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 that: (1) Argo’s reserves were wholly inadequate and its underwriting standards were not prudent as was represented; (2) Argo had dramatically changed its underwriting policies on certain U.S. construction contracts as far back as 2018; (3) these policies were underwritten outside of the Company’s “core” business including in certain states and for certain exposures that were far riskier than investors understood and that the Company no longer would service moving forward; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Argo common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20221021005465/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
