Shareholders Hit Kingstone Insurance With Stock-Drop Suit
Law360 (June 13, 2019, 9:22 PM EDT) -- A proposed class of recent investors in Kingstone Insurance Co. filed suit in New York federal court Wednesday claiming careless internal financial controls and accounting methods led to some $5 million in unanticipated charges to the company's claims reserve.
Stockholders say Kingstone executives sent stock prices plummeting when announcing how these claims charges would negatively affect two key insurance industry profit indicators for the year.
Those indicators are the "combined ratio," which measures dividends, expenses and losses flowing out of an insurance company, and "catastrophe losses," an index quantifying the magnitude of insurance claims expected from major disasters.
Company executives announced...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!