RM LAW, P.C. has commenced an investigation into potential securities law violations by certain officers of The Allstate Corporation (“Allstate” or the “Company”) (NYSE: ALL).
If you purchased shares of Allstate and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
A class action Complaint was filed on behalf of those who purchased securities of Allstate between October 29, 2014, and August 3, 2015. According to the lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that the reason for the sudden spike in its auto claims frequency, which defendants claimed was due to external events beyond the Allstate’s control, was actually the result of Allstate’s growth in its auto policy business through higher risk drivers. On August 3, 2015, Allstate reported disappointing second-quarter 2015 financial results, including a third consecutive quarter of increased auto claims frequency, a 57% decline in operating income, and operating earnings per share that were $0.34 below analysts’ consensus estimate. On that same day, Allstate’s CEO stated that the lower quarterly profit was “driven by a deterioration in auto insurance margins” and explained that “[a]uto insurance margins decreased as higher claim frequency and severity more than offset average auto insurance price increases.” On February 27, 2018, the courts denied Allstate’s motion to dismiss.