AmTrust Escapes Investors' Suit Over Financial Restatements
Law360 (September 9, 2019, 8:02 PM EDT) -- A New York federal court on Monday dismissed a proposed class action alleging AmTrust Financial Services Inc. made a series of misstatements about its finances dating back to 2012 that required the insurer to restate its financials and ultimately sunk the company’s stock.
In an 83-page opinion, U.S. District Judge Lewis Kaplan found that some of the financial metrics at the center of the restatements should be considered opinions that are subject to a higher pleading standard than facts, which the company's investors must merely prove were untrue or misleading.
The court evaluated various accounting issues individually. In one instance, an...
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