November 16, 2022. The Parties agreed to and the Court approved a $13 million settlement in a class action securities lawsuit involving AmTrust Financial Services. Plaintiffs alleged that the company mislead investors by telling them the that the Company’s preferred shares would continue to be listed on the New York Stock Exchange after a planned transaction in which the common shares would be taken private. After the “go-private” transaction, the preferred shares were delisted, causing them to decline approximately 40%. Professor Steven Feinstein of Babson College and Crowninshield Financial Research, Inc. conducted research and provided expert testimony establishing that the AmTrust preferred shares traded in an efficient market, and that preferred share investors suffered losses caused by the alleged misrepresentations. Professor Feinstein also quantified the damages sustained.
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