Shareholders Foundation, Inc.

Meadowbrook Insurance Group, Inc. (NYSE:MIG) Investor Alert: Lawsuit Alleges Misleading Statements

A lawsuit was filed on behalf of investors in Meadowbrook Insurance Group, Inc. (NYSE:MIG) shares over alleged securities laws violations. Deadline: October 14, 2013. NYSE:MIG investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
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San Diego, CA -- (SBWIRE) -- 08/26/2013 -- An investor, who purchased shares of Meadowbrook Insurance Group, Inc. (NYSE:MIG), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Meadowbrook Insurance Group, Inc. in connection with certain allegedly false and misleading statements made between July 30, 2012 and August 8, 2013.

Investors who purchased a significant amount of shares of Meadowbrook Insurance Group, Inc. (NYSE:MIG) between July 30, 2012 and August 8, 2013, and / or those who purchased NYSE:MIG shares prior to July 2012 and currently hold any of those shares, have certain options and for certain investors are short and strict deadlines running. Deadline: October 14, 2013. NYSE:MIG investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

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’s financial stability was severely impaired, that the Company's reported goodwill was materially inflated, that Meadowbrook Insurance Group’s capital position was not strong enough to support its ongoing insurance operations in a sustainable fashion, that Meadowbrook Insurance Group was in breach of its financial covenants applicable to its credit facilities, that Meadowbrook Insurance Group 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’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 reaced $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 the Company 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. declined from almost $9 in July 2013 to $5.89 per share on August 20, 2013.

On August 23, 2013, NYSE:MIG shares closed at $6.04 per share.

Those who purchased shares of Meadowbrook Insurance Group, Inc. (NYSE:MIG), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com