RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Hallmark Financial Services, Inc. ("Hallmark Financial" or the "Company") (NASDAQ: HALL) securities during the period from March 5, 2019 through March 17, 2020, inclusive (the “Class Period”).
Hallmark Financial shareholders may, no later than July 6, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Hallmark Financial 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.
On March 2, 2020, Hallmark Financial announced its decision to exit from its Binding Primary Commercial Auto business and reported a $63.8 million loss development for prior underwriting years. On this news, Hallmark's stock price fell $2.10 per share, or more than 14%, to close at $12.23 per share on March 3, 2020.
On March 11, 2020, Hallmark Financial 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 this news, Hallmark's stock price fell $2.39 per share, or over 29%, to close at $5.71 per share on March 12, 2020.
Then, on March 17, 2020, Hallmark filed with the U.S. Securities and Exchange Commission 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." On this news, Hallmark's stock price fell an additional $0.08 per share, or 2.5%, to close at $3.12 per share on March 18, 2020.
If you are a member of the class, you may, no later than July 6, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.