Lawsuit Overview
December 8, 2014 - The parties filed a stipulation of dismissal with prejudice.
November 5, 2014 - Defendants filed a motion to dismiss.
October 6, 2014 - The lead plaintiffs filed a second amended consolidated complaint on behalf of investors who purchased Meadowbrook Insurance Group Inc (NYSE: MIG) common shares between February 17, 2009 and February 21, 2014. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 17, 2009 and February 21, 2014.
July 7, 2014 - Defendants filed a motion to dismiss.
April 25, 2014 - The lead plaintiffs filed an amended consolidated complaint.
January 31, 2014 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.
October 14, 2013 - Lead plaintiff motions were filed.
August 15, 2013 - An investor in shares of Meadowbrook Insurance Group Inc (NYSE: MIG) filed a lawsuit in the U.S. District Court for the Southern District of New York against Meadowbrook Insurance Group Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 30, 2012 and August 8, 2013.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Meadowbrook Insurance Group Inc (NYSE: MIG) between July 30, 2012 and August 8, 2013, that Meadowbrook Insurance Group Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that defendants allegedly Defendants made false and/or misleading statements and/or failed to disclose that Meadowbrook Insurance Group Inc’s financial stability was severely impaired, that the Company's reported goodwill was materially inflated, that Meadowbrook Insurance Group Inc’s capital position was not strong enough to support its ongoing insurance operations in a sustainable fashion, that Meadowbrook Insurance Group Inc was in breach of its financial covenants applicable to its credit facilities, that Meadowbrook Insurance Group Inc lacked adequate internal and financial controls, including controls over outstanding claims, asset impairment charges and maintenance of an appropriate capital position, and that as a result of the foregoing, Meadowbrook Insurance Group Inc’s statements were materially false and misleading at all relevant times.
Meadowbrook Insurance Group Inc reported that its annual Total Revenue increased from $750.07 million in 2010 to $996.76 million in 2012, while its respective Net Income declined from $58.97 million to $11.75 million.
Shares of Meadowbrook Insurance Group Inc (NYSE: MIG) traded in early 2012 as high as $11.87 per share and declined to $5.29 per share in December 2012. NYSE: MIG shares rose in the first half of 2013 and reached $8.88 per share in July 2013.
On August 9, 2013, Meadowbrook Insurance Group Inc announced that it has filed a Form with the U.S. Securities and Exchange Commission so as to allow it to file Form 10-Q for the period ending June 30, 2013 by August 14, 2013. Meadowbrook Insurance Group Inc said that the additional time will provide Meadowbrook Insurance Group Inc with the time necessary to estimate the impact on its goodwill resulting from the August 2nd announcement by A.M. Best of a ratings change.
Shares of Meadowbrook Insurance Group Inc (NYSE: MIG) declined from almost $9 in July 2013 to $6.36 per share on August 15, 2013.