WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Meadowbrook Insurance Group, Inc. (NYSE: MIG)?
- Did you purchase your shares before July 30, 2012, or between July 30, 2012 and August 8, 2013, inclusive?
- Did you lose money in your investment in Meadowbrook Insurance Group, Inc.?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Meadowbrook Insurance Group, Inc. (“Meadowbrook” or the “Company”) (NYSE: MIG) between July 30, 2012 and August 8, 2013, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Meadowbrook during the Class Period, or purchased shares prior to the Class Period and still hold Meadowbrook, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/meadowbrook-insurance-group-inc-mig.
Meadowbrook is a specialty niche focused commercial insurance underwriter and insurance administration services company. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) the Company’s financial stability was severely impaired; (2) the Company’s capital position was not strong enough to support its ongoing insurance operations in a sustainable fashion; (3) the Company was in breach of its financial covenants applicable to its credit facilities; (4) the Company lacked adequate internal and financial controls, including controls over outstanding claims, asset impairment charges and maintenance of an appropriate capital position; and (5) as result of the foregoing, the Company’s statements concerning its financial condition were materially false and misleading at all relevant times. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on October 19, 2012, A.M. Best Company “A.M. Best” announced that it had put the financial strength rating and issuer credit rating Meadowbrook’s Insurance Company Subsidiaries, and its issuer credit rating under review with negative implications. Then, on August 2, 2013, A.M. Best downgraded the Company’s financial strength rating from “A-” to “B++” with a stable outlook. On August 9, 2013, Meadowbrook announced that it was unable, without unreasonable effort or expense, to file its Quarterly Report of Form 10-Q for the quarter ended June 30, 2013 within the prescribed time period. Finally, on August 14, 2013, the Company announced that it would take a non-cash impairment of goodwill of $115.4 million in the three months ended June 30, 2013. The impairment wiped out nearly all of the Company’s goodwill on its balance sheet, and caused the Company to violate “financial covenants” applicable to the certain credit facilities.
On this news, shares in Meadowbrook, which traded as high as $8.90 during the Class Period, closed at $6.36 on August 15, 2013.
If you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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