A lawsuit was filed on behalf of investors in National General Holdings Corp (NASDAQ: NGHC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/19/2019 -- An investor, who purchased shares of National General Holdings Corp (NASDAQ: NGHC), filed a lawsuit over alleged violations of Federal Securities Laws by National General Holdings Corp.
Investors who purchased shares of National General Holdings Corp (NASDAQ: NGHC) have certain options and for certain investors are short and strict deadlines running. Deadline: September 23, 2019. NASDAQ: NGHC investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On July 27, 2017, an article was published that revealed for the first time the Collateral Protection Insurance forced-placed insurance scheme. The article cited an internal report commissioned by Wells Fargo's executives, which reportedly stated that more than 800,000 auto loan customers, including active military personnel, had paid for unnecessary CPI, pushing nearly 274,000 of them into delinquency and resulting in more than 20,000 unlawful vehicle repossessions. In the days that followed, attention increasingly turned to National General Holdings Corp and its role in the scheme. The Company faced numerous regulatory investigations, congressional scrutiny, and civil lawsuits that caused a decline in the price of National General shares
On August 8, 2017, Commissioner Dave Jones ordered the California Department of Insurance "to open an investigation into recent allegations that Wells Fargo and National General Insurance improperly charged consumers for 'force-placed' or 'lender-placed' auto insurance for consumers who had auto loans with Wells Fargo." National General Holdings Corp was an underwriter of the insurance.
The plaintiff claims that between August 6, 2015 and August 9, 2017, the defendants failed to disclose that National General, together with banking giant Wells Fargo, had engaged in a massive insurance scheme to bilk Wells Fargo customers out of millions of dollars, that through this scheme, National General forced thousands of customers to pay for auto insurance – commonly known as Collateral Protection Insurance ("CPI") – that they did not need or want. National General served as Wells Fargo's CPI vendor for all aspects of the program from July 2015 until the program was discreetly terminated in September 2016, that Defendants possessed information showing that these customers already had their own insurance, but forced them to be subject to redundant, unnecessary, and overly expensive CPI policies anyway, and that in addition, while defendants were concealing their participation in the fraudulent CPI scheme from investors, they were reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme.
Those who purchased shares of National General Holdings Corp (NASDAQ: NGHC) have certain options and should contact the Shareholders Foundation.
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