James River Group Holdings, Ltd.

Investigation
07/09/2021

Initial Lawsuit
07/09/2021

Lawsuit Progression
09/22/2021

Investigation

Continous Holding
August 1, 2019 to May 5, 2021
Proposed Claim
Securities Violation

Did James River mislead investors in connection with its contract with Uber, its reserves for the Uber policy and exposure to Uber claims?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds

Main Event

"More Conservative Estimate"

05/05/2021

Company Statement

James river announces its Q1 2021 results, along with a “$168.7 million of unfavorable development in the E&S segment, inclusive of $170.0 million of unfavorable development in Commercial Auto, primarily driven by a previously canceled account that has been in runoff since 2019” (the Uber/Raiser account).

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$34.23	$46.5	$-12.27	-26.39%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 07/09/2021

A James River Group Holdings, Ltd. investor filed a securities class action lawsuit on behalf of all persons and entities that purchased James River common stock between August 1, 2019 and May 5, 2021, inclusive.

Filing Date
07/09/2021
Class Period
08/01/2019 to 05/05/2021
Transgression
Securities Violation
Filing Firms
Cohen Milstein Sellers & Toll PLLC
Saxena White P.A.
Case Title
Employees' Retirement Fund of the City of Fort Worth v. James River Group Holdings, Ltd. et al
Docket Number
3:21-cv-00444
Court
Virginia Eastern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) James River had not adequately reserved for its Uber policies;
(2) James River was using an incorrect methodology for setting reserves that materially understated the company’s true exposure to Uber claims;
(3) as a result, James River was forced to increase its unfavorable reserves in subsequent quarters even after cancelling the Uber policies;
(4) as a result of the foregoing, defendants’ statements about James River’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.

Defendants

Company
James River Group Holdings, Ltd.
Chief Executive Officer
Robert P. Myron
Chief Executive Officer
Abram
Chief Executive Officer
Frank N. D'Orazio

Lawsuit progression

Docket Number
3:21-cv-00444
Court
Virginia Eastern District Court

Lead Counsel

09/22/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Bernstein Litowitz Berger & Grossman LLP
Saxena White P.A.
Lead Plaintiff
Group of Funds
Free File
Order for lead

Amended Complaint

11/19/2021

Lead Plaintiffs Employees’ Retirement Fund of the City of Fort Worth d/b/a Fort Worth Employees’ Retirement Fund and The City of Miami General Employees’ & Sanitation Employees’ Retirement Trust . . . on behalf of themselves and all other similarly situated persons and entities, except defendants and their affiliates, who purchased or otherwise acquired James River Group Holdings, Ltd. common stock between February 22, 2019 and October 25, 2021, inclusive, and were damaged thereby.