:RM LAW, P.C. is investigating potential claims against the board of directors of James River Group Holdings, Ltd. ("James River" or the "Company") (NASDAQ: JRVR) investors concerning the Company’s possible violations of the federal securities laws.
If you own shares of James River and would like to learn more about this class action 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. You may also email Mr. Maniskas at email@example.com.
The investigation is focused on whether James River misled investors about its insurance policies covering Uber ride-share drivers that were insured through Rasier, and the extent of the claims and losses incurred on those policies.
On October 8, 2019, James River announced that it had canceled all insurance policies issued to Rasier and its affiliates, placing the entire account in runoff. As a result, the Company incurred a "[p]re-tax, adverse development" charge of up to $60 million for the third quarter of 2019. On this news, James River's stock price declined $11.06 per share, or approximately 23%.
Then, on May 5, 2021, James River disclosed an additional $170 million "unfavorable development" charge as a result of a re-assessment of expected payouts on claims related to a "previously canceled account" that had been in runoff since 2019. As a result, the next day, James River also announced that it would price its previously announced underwritten public stock offering at $31 per share-representing a 33% discount from the Company's closing stock price on the previous day. On this news, James River's stock price declined $12.27 per share, or over 26%.