NEW YORK--(BUSINESS WIRE)--The Rosen Law Firm, P.A. announces that a class action lawsuit has been filed on behalf of all purchasers of the common stock of Tower Group International Ltd. and its precursor, Tower Group Inc. (NYSE:TWGP) during the period from July 30, 2012 to August 8, 2013, seeking to recover damages for violations of the federal securities laws.
To join the Tower Group class action, visit the firm’s website at http://rosenlegal.com, or call Phillip Kim, Esq. or Kevin Chan, toll-free, at 866-767-3653; you may also email at email@example.com or firstname.lastname@example.org for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
According to the lawsuit, defendants made false and misleading statements and/or failed to disclose 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.
On August 7, 2013, Tower Group issued a press release announcing that it was postponing the release of its financial results for the second quarter of 2013 and needed additional time to review matters relating to the estimate of its loss reserves and, primarily due to the integration of the Canopius Bermuda merger, its allocation of goodwill and certain tax accounts. Then, on August 8, 2013, the Company provided guidance on its second quarter 2013 results wherein it disclosed that the Company may record an 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.
When this adverse information entered the market, the price of Tower Group stock dropped more than 24%, closing at $16.41 per share on August 8, 2013, damaging investors.
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. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of The Rosen Law Firm, toll-free, at 866-767-3653, or via e-mail at email@example.com. You may also visit the firm’s website at http://rosenlegal.com.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.