A lawsuit was filed on behalf of investors in ProAssurance Corporation (NYSE:PRA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 06/30/2020 -- An investor, who purchased shares of ProAssurance Corporation (NYSE: PRA), filed a lawsuit over alleged violations of Federal Securities Laws by ProAssurance Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of ProAssurance Corporation (NYSE: PRA) have certain options and for certain investors are short and strict deadlines running. Deadline: August 17, 2020. NYSE: PRA investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On January 22, 2020, after the market closed, ProAssurance Corporation disclosed a $37 million charge to its loss reserves for fourth quarter 2019 due to "deteriorating loss experience, driven by a large national healthcare account."
On February 20, 2020, ProAssurance Corporation announced its 2019 fourth quarter and full year results. ProAssurance Corporation revealed that the adverse development from this one large national healthcare account was actually $51.5 million, much larger than the initial estimate of $37 million only a month prior.
Then, on May 8, 2020, ProAssurance Corporation announced that the large healthcare client would likely not renew its policy and instead would likely exercise an option for tail coverage that would result in an additional $50 million in losses in the second quarter of 2020. This loss, when combined with the $51.5 adverse development, meant that the Company would suffer over $100 million in losses from a single account.
Shares of ProAssurance Corporation (NYSE: PRA) declined from $37.61 per share on January 22, 2020 to as low as $12.67 per share on May 14, 2020.
The plaintiff claims that between April 26, 2019 and May 7, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty P&C segment, that ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten, and that as a result, ProAssurance was subject to a materially heightened risk of financial loss and reserve charges.
Those who purchased shares of ProAssurance Corporation (NYSE: PRA) have certain options and should contact the Shareholders Foundation.
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