San Diego, CA -- (SBWIRE) -- 05/20/2020 -- An investor, who purchased shares of Hallmark Financial Services, Inc. (NASDAQ: HALL), filed a lawsuit over alleged violations of Federal Securities Laws by Hallmark Financial Services, Inc.

Investors who purchased shares of Hallmark Financial Services, Inc. (NASDAQ: HALL) have certain options and for certain investors are short and strict deadlines running. Deadline: July 6, 2020. NASDAQ: HALL investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On March 2, 2020, Hallmark Financial Services, Inc. announced that it had decided to exit from its Binding Primary Commercial Auto business and reported a $63.8 million loss development for prior underwriting years.

On March 11, 2020, Hallmark Financial Services, Inc. disclosed that it had dismissed its independent auditor, BDO USA, LLP ("BDO"), due to a disagreement regarding estimates for reserves for unpaid losses, among other things.

On March 17, 2020, Hallmark Financial Services, Inc. filed with the SEC a letter from BDO in which BDO stated "BDO expanded significantly the scope of its audit on January 31, 2020, with respect to which a substantial portion of the requests had not been received and/or tested prior to our termination."

Shares of Hallmark Financial Services, Inc. (NASDAQ: HALL) declined from $18.94 per share on January 21, 2020, to as low as $2.35 per share on March 16, 2020, respectively $2.80 per share on March 18, 2020.

The plaintiff claims that between March 5, 2019 and March 17, 2020, the defendants made false and/or misleading statements and/or failed to disclose that the Company lacked effective internal controls over accounting and financial reporting related to reserves for unpaid losses, that the Company improperly accounted for reserve for unpaid losses and loss adjustment expenses related to its Binding Primary Commercial Auto business, that as a result, Hallmark Financial would be forced to report a $63.8 million loss development for prior underwriting years, that as a result, Hallmark Financial would exit from its Binding Primary Commercial Auto business, and that 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.

Those who purchased shares of Hallmark Financial Services, Inc. (NASDAQ: HALL) have certain options and should contact the Shareholders Foundation.

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

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.