NEW YORK, May 07, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Hallmark Financial Services, Inc. (“Hallmark” or the “Company”) (NASDAQ: HALL) in the United States District Court for the Northern District of Texas on behalf of those who purchased or acquired the securities of Hallmark between March 5, 2019 and March 17, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Hallmark investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked effective internal controls over accounting and financial reporting related to reserves for unpaid losses; (2) the Company improperly accounted for reserve for unpaid losses and loss adjustment expenses related to its Binding Primary Commercial Auto business; (3) as a result, Hallmark would be forced to report a $63.8 million loss development for prior underwriting years; (4) as a result, Hallmark would exit from its Binding Primary Commercial Auto business; and (5) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. According to the suit, these true details were disclosed by a market research firm.
Investors who purchased or otherwise acquired shares of Hallmark during the Class Period should contact the Firm prior to the July 6, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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