NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into ProAssurance Corporation (NYSE: PRA).
On January 22, 2020, the Company disclosed a $37 million charge to its loss reserves for fourth-quarter 2019 due to “deteriorating loss experience, driven by a large national healthcare account.” Then, on February 20, 2020, the Company disclosed its 2019 fourth quarter and full year results, revealing that the adverse development from the one large national healthcare account was actually $51.5 million, much larger than the initial estimate of $37 million only a month prior. Then, on May 8, 2020, the Company disclosed that the large client would likely not be renewing its policy but instead exercise an option for tail coverage that would result in an additional $50 million in losses for 2Q 2020.
The Company and certain of its executives have been sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws, which remains ongoing.
KSF’s investigation is focusing on whether ProAssurance’s officers and/or directors breached their fiduciary duties to ProAssurance’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of ProAssurance shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or visit https://www.ksfcounsel.com/cases/nyse-pra/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.