Meadowbrook Insurance says class-action litigation filed against it is without merit.
“While we understand that it is not unusual for this type of complaint to be filed when a company experiences a material drop in the trading price of its shares, we believe that the complaint is inaccurate and the claims are entirely without merit,” says Mike Costello, senior vice president, general counsel and secretary at Meadowbrook, in a statement. “We emphatically reject any suggestion that the Company or any of its officers violated the federal securities laws. Accordingly, we will vigorously defend ourselves and will pursue all remedies available to us in connection with this matter.”
A federal class-action complaint alleging securities fraud has been filed in U.S. District Court for the Southern District of New York by the law firm Pomerantz Grossman Hufford Dahlstrom & Gross. The suit seeks to recover damages against the company and certain of its officers and directors as a result of alleged violations of the federal securities laws. The insurer misled investors of its financial stability and inflated its goodwill, the suit alleges.
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