NEW YORK, Oct. 9, 2013 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tower Group International, Inc. ("Tower" or the "Company") (Nasdaq: TWGP ) of the October 21, 2013 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain executives.
A complaint has been filed on behalf of all persons who purchased or otherwise acquired Tower securities between May 9, 2011 and September 17, 2013 (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning business, operational, and compliance policies. Specifically, the action focuses on whether (i) Tower did not properly estimate its loss reserve provisions in regards to Generally Accepted Accounting Principles and (ii) the Company did not properly allocate goodwill and certain of its deferred tax assets.
On August 8, 2013, Tower announced it was postponing the release of its financial results for the second quarter of 2013 to review matters relating to the estimate of its loss reserves, its allocation of goodwill, and certain tax accounts. Following this news, the stock dropped $5.20 or 24%.
On October 8, 2013, Tower announced that it will increase loss reserves to $365 million to cover additional losses in its commercial insurance lines and take a $215 million goodwill impairment charge. In response, Tower stock dropped $3.02 or 41%.
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Take Action
If you invested in Tower stock, bonds or options between May 9, 2011 and October 8, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/TWGP . You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Tower's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP 369 Lexington Avenue, 10th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. Francis McConville, Esq. Telephone: (877) 247-4292 or (212) 983-9330
