Argo Group faces securities class action

Deadline set for filing lead plaintiff motion

Argo Group faces securities class action

Insurance News

By Terry Gangcuangco

A securities class action on behalf of Argo Group International Holdings investors has been filed, with the underwriter being accused of misleading shareholders about the company’s growth and business prospects.

One of the firms looking to represent relevant investors, The Law Offices of Frank R. Cruz, noted: “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 US 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.”

The lawsuit was filed on behalf of persons and entities that purchased or otherwise acquired Argo common stock between February 13, 2018, and August 9, 2022.

Robbins LLP, one of the other firms, said: “Similarly situated shareholders may be eligible to participate in the class action against Argo. Shareholders who want to be appointed lead plaintiff for the class must file their papers by December 20, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.”

Through a contingency fee arrangement, shareholders may be entitled to compensation without paying out-of-pocket costs or expenses.

Argo, as of this writing, has not issued a statement in response to the class action.  

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