NEW YORK, June 13, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Hallmark Financial Services, Inc. (“Hallmark” or the “Company”) (NASDAQ: HALL). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Hallmark and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
