NEW YORK, June 24, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Kingstone Companies, Inc. (“Kingstone” or the “Company”) (NASDAQ: KINS) of the August 12, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Kingstone stock or options between March 14, 2018 and April 29, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/KINS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Kingstone securities between March 14, 2018 and April 29, 2019 (the “Class Period”). The case, Woolgar v. Kingstone Companies, Inc. No. 1:19-cv-05500 was filed on June 12, 2019 and has been assigned to Judge Ronnie Abrams.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose; (1) that the Company did not adequately follow industry best practices related to claims handling; (2) that, as a result, the Company did not record sufficient claims reserves; (3) that the Company lacked adequate internal control over financial reporting; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Specifically, on April 29, 2019, the Company disclosed a $2.5 million charge to its claims case reserves and a $2.5 million charge to its incurred but not reported (“IBNR”) reserves, based on a “comprehensive review of [the Company’s] claims operations.” As a result of the charges, the Company “expects to end the full year with a combined ratio excluding catastrophe losses of 88% to 91% and catastrophe losses of 4 to 5 points.”
On this news, the Company’s stock price fell from $13.68 per share on April 29, 2019 to $11.61 per share on April 30, 2019— a $2.07 or 15.13% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Kingstone’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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