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NEW YORK, NY / ACCESSWIRE / June 21, 2020 / Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a motion for lead plaintiff in a securities class action has been filed on behalf of investors that purchased or acquired the securities of ProAssurance Corporation ("ProAssurance" or the "Company") (PRA) between April 26, 2019 and May 7, 2020 (the "Class Period"). The lawsuit filed in the United States District Court for the Northern District of Alabama alleges violations of the Securities Exchange Act of 1934.
If you purchased ProAssurance securities, and/or would like to discuss your legal rights and options please visit ProAssurance Shareholder Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty P&C segment; (ii) ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten; and (iii) as a result, ProAssurance was subject to materially heightened risk of financial loss and reserve charges.
On January 22, 2020 ProAssurance announced that because of a deteriorating loss experience related mainly to one large healthcare account the Comapny was estimating a $37 million adverse development in its specialty P&C loss reserves for the fourth quarter of 2019.
In response to this disclosure ProAssurance's stock price fell $4.18 per share or 11% to close at $33.40 per share on January 23, 2020.
Then, on May 8, 2020, ProAssurance announced that the large healthcare client would likely not renew its policy and instead would likely exercise an option for tail coverage that would result in an additional $50 million in losses in the second quarter of 2020. In response to this disclosure, ProAssurance's stock price fell $4.38 per share, or 22% to close at $15.95 per share on May 8, 2020.
If you wish to serve as lead plaintiff, you must move the Court no later than August 17, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.