BERKELEY, Calif.--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, is investigating whether the class period for a securities fraud lawsuit filed against Tower Group International, Ltd. (NASDAQ:TWGP) (“TWGP” or “the Company”) on behalf of investors should be expanded following TWGP’s Oct. 7, 2013, announcement that it would add $365 million to its loss reserves and take a $215 million goodwill impairment charge. Investors who have suffered losses can contact Hagens Berman attorneys by emailing TWGP@hbsslaw.com.
“review matters relating to the estimate of its loss reserves”
The firm is investigating whether the class period, currently for those who purchased TWGP stock between May 9, 2011, and Aug. 8, 2013, should be expanded to include losses incurred after the company’s latest announcement. Investors with losses exceeding $100,000 may qualify to be a lead plaintiff in the case, and may contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. The firm reminds investors that the deadline to be considered for lead plaintiff in the case is Oct. 21, 2013.
TWGP’s recent announcement follows the filing of a securities lawsuit claiming that the company misled its investors prior to its Aug. 7, 2013 announcement that it would postpone releasing Q2 2013 financial results because it needed more time to “review matters relating to the estimate of its loss reserves,” among other reasons. The next day, the company disclosed guidance for Q2 2013, including adverse reserve development between $60-$110 million. On the news, the price of TWGP stock fell by more than 60 percent.
The stock price fell again, this time by more than 40 percent, following the company’s Oct. 7, 2013, announcement that it would add $365 million to its loss reserves and take a $215 million goodwill impairment charge.
“We wonder why Tower did not disclose these issues to investors earlier,” said Reed Kathrein. “We believe that investors who purchased stock as late as Oct. 7, 2013, may have suffered losses because of Tower’s failure to come clean earlier.”
Additional information is available at http://hb-securities.com/investigations/TWGP.
Persons with non-public information may want to consider their options to help in the investigation or take advantage of the SEC Whistleblower Program. Under the new SEC Whistleblower Program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities including New York, where this lawsuit has been filed. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.