Back in January the likes of Rosen Law and Bragar Eagel & Squire announced the filing of a class action lawsuit against Markel Corporation over supposed disclosure failures and misleading statements. Now law firms are reminding impacted investors that they only have until March 12 to apply as lead plaintiff.
Filed with the US District Court for the Southern District of New York, the complaint alleges that throughout the class period between July 26, 2017 and December 06, 2018, “material adverse facts” about Markel’s business, operations, and prospects were not disclosed.
In particular, these centred on loss reserves recording at insurance-linked securities fund manager Markel CATCo Investment Management Ltd and its subsidiaries. Last December parent firm Markel revealed that it had been contacted by US and Bermuda authorities over the loss reserves matter and that it was fully cooperating with the inquiries.
The announcement led to Markel’s share price closing more than 8% lower on December 07.
Meanwhile certain officers and directors are also implicated in the class action, which seeks to pursue remedies under the US Securities Exchange Act of 1934. Now multiple firms such as Pawar Law Group, the Law Offices of Howard G. Smith, and Pomerantz LLP have issued reminders ahead of the March 12 lead plaintiff deadline.
Run-off recommendation
In a separate development, Markel CATCo’s listed fund CATCo Reinsurance Opportunities Fund Ltd is looking at a possible run-off.
“Following the company’s announcement on December 18, 2018 in relation to the proposal to restructure the company by offering shareholders the opportunity to elect to convert their shares into redemption shares, the company has now completed its consultation with shareholders,” it stated.
“The board has concluded that, if offered the choice, a large majority of shareholders would elect to convert their shares into redemption shares. As a consequence, the board, having consulted with its advisers, has determined to recommend an orderly run-off of the company’s portfolios in place of the restructuring.”
Separate class meetings with ordinary shareholders and C shareholders will be held on March 26. These are aimed at gaining approval for the proposed run-offs.
