GRABAR LAW OFFICE INVESTIGATES POTENTIAL SHAREHOLDER ACTION ON BEHALF OF CURRENT SHAREHOLDERS OF PROASSURANCE CORPORATION (NYSE: PRA)
A federal securities fraud class action against ProAssurance Corporation has survived a motion to dismiss.
The complaint alleges that defendants misrepresented the Company’s underwriting and reserve standards and failed to adequately reserve for losses. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty Property and Casualty segment; (2) ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten; and (3) as a result, ProAssurance was subject to materially heightened risk of financial loss and reserve charges.
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Additional Information About the Potential Shareholder Action
On December 10, 2021, the court in the underlying case found that that the plaintiffs sufficiently plead § 10(b) claims against Friedman, Boguski, and ProAssurance based on their material misstatements regarding observed frequency data underlying the company’s reserve estimates and the company’s commitment to conservative underwriting and reserve-setting and plausibly plead claims against the five executive-defendants as controlling persons of ProAssurance.
Unlike a class action, brought on behalf of damaged investors, a shareholder derivative action is an action brought by a shareholder of a public company on behalf of and for the benefit of the company itself against the directors and/or officers of that company. In a derivative action, shareholders “step into the shoes” of the directors and officers of a company and bring litigation that the board would be unwilling to pursue on its own.
Current ProAssurance shareholders who have held shares of the Company’s stock since August 8, 2018, can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, please fill out the form provided or contact us at email@example.com or call 267-507-6085. $PRA
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