May 1, 2020 - An amended complaint was filed.

February 11, 2019 - An investor in shares of Maiden Holdings, Ltd. (NASDAQ: MHLD) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Maiden Holdings, Ltd. in connection with certain allegedly false and misleading statements made between March 4, 2014 and November 9, 2018.

Bermuda based Maiden Holdings, Ltd. is a holding company that focuses on serving the needs of regional and specialty insurers in the United States. Maiden Holdings, Ltd. has two reportable operating segments Diversified Reinsurance and AmTrust Reinsurance. The Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies. The AmTrust Reinsurance segment includes all business ceded by AmTrust Financial Services, Inc. (“AmTrust”). Maiden Holdings, Ltd. reported that its annual Total Revenue rose from over $2.73 billion in 2016 to over $2.92 billion in 2017 and that its Net Income of $48.98 million in 2016 declined to a Net Loss of $169.89 million.

On November 9, 2018, Maiden Holdings, Ltd. announced its financial results for the quarter ended September 30, 2018. The release revealed that Maiden Holdings, Ltd had sustained a massive $308.8 million net loss during the quarter. Maiden Holdings, Ltd disclosed that it had suffered a staggering $210.4 million adverse prior year loss development in its AmTrust segment. The announcement also revealed that the sale of Maiden Holdings, Ltd business assets had resulted in an impairment loss of $74.2 million.

According to the complaint the plaintiff alleges on behalf of purchasers of Maiden Holdings, Ltd. (NASDAQ: MHLD) common shares between March 4, 2014 and November 9, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between March 4, 2014 and November 9, 2018, the defendants misrepresented the quality and nature of Maiden Holdings, Ltd.’s underwriting and risk management policies and practices and the risks of its reinsurance portfolio. In particular, the plaintiff alleges that the defendants misleadingly claimed that they were subjecting AmTrust’s insurance portfolio to robust analysis and cross-checks to ensure that Maiden Holdings, Ltd. had appropriately priced the risk of reinsuring AmTrust’s insurance portfolio and that in truth, Maiden Holdings, Ltd. had failed to employ sufficient underwriting and risk management protocols and had largely abdicated its responsibility to ensure that its AmTrust Reinsurance segment priced policies commensurate with the risk assumed by Maiden Holdings, Ltd..