WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Tower Group International, Ltd. (NASDAQ GS: TWGP)?
- Did you purchase your shares between July 30, 2012 and August 8, 2013, inclusive?
- Did you lose money in your investment in Tower Group International, Ltd.?
- 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 Tower Group International, Ltd. (“Tower” or the “Company”) (NASDAQ GS: TWGP) 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 Tower during the Class Period 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/tower-group-international-ltd-twgp.
Through its insurance subsidiaries, Tower offers a broad range of general commercial, specialty commercial and personal property and casualty insurance products and services to businesses in various industries and to individuals throughout the United States. 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 failed to properly estimate its loss reserve provisions as required by Generally Accepted Accounting Principles; and (2) the Company failed to properly allocate its goodwill and certain deferred tax assets. 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 August 7, 2013, the Company issued a press release announcing that it would need additional time to review matters relating to the estimate of its loss reserves and its allocation of goodwill and certain tax accounts. The Company claimed the additional time was needed as a result of the changes in the Company’s operating and reporting segments and updates to its internal controls in the second quarter of 2013 in light of its merger with Canopius Group Limited in March of 2013. Then, on August 8, 2013, the Company provided guidance on its second quarter 2013 results wherein it disclosed that the Company may record adverse reserve development of $60 million to $110 million pre-tax. The Company also disclosed that it had hired an independent actuarial firm to review selected areas of its loss reserves as of June 30, 2013.
On this news, shares in Tower dropped more than 24%, closing at $16.41 per share on August 8, 2013, from a close of $21.61 per share on August 7, 2013, on unusually heavy trading volume of over 3 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than October 21, 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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