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Argo Group International Holdings, Ltd. Class Action Lawsuit - ARGO

17 days left to seek lead plaintiff status

Case Summary

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The Argo Group class action lawsuit seeks to represent purchasers or acquirers of Argo Group International Holdings, Ltd. (NYSE: ARGO) common stock between February 13, 2018 and August 9, 2022, inclusive (the “Class Period”).  Captioned The Police & Fire Retirement System City of Detroit v. Argo Group International Holdings, Ltd., No. 22-cv-08971 (S.D.N.Y.), the Argo Group class action lawsuit charges Argo Group and certain of its top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Argo Group class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Argo Group class action lawsuit must be filed with the court no later than December 19, 2022.

CASE ALLEGATIONS: Argo Group underwrites international specialty insurance products in the property and casualty markets.  Specifically, Argo Group claims to target “niche” markets in order to develop a leadership position and generate “superior underwriting profits.”

The Argo Group class action lawsuit alleges that defendants during the Class Period assured investors that they had closely monitored Argo Group’s policies and could set appropriate reserves.  Defendants cultivated a narrative that Argo Group had a long history of successfully managing its reserves and that Argo Group had a prudent belief that this was also true for the last 14 out of 15 years.  However, as the Argo Group class action lawsuit alleges, this and other similar statements were false and misleading because: (i) Argo Group’s reserves were wholly inadequate and its underwriting standards were not prudent as was represented; (ii) Argo Group had dramatically changed its underwriting policies on certain U.S. construction contracts as far back as 2018; and (iii) these policies were underwritten outside of Argo Group’s “core” business including in certain states and for certain exposures that were far riskier than investors understood and that Argo Group no longer would service moving forward.

On February 8, 2022, Argo Group issued a press release announcing that its fourth quarter results for 2021 would be negatively impacted by $130 to $140 million worth of adverse prior year reserve development and non-operating charges.  Argo Group further disclosed additional non-operating charges of $60 million to $70 million resulting in part from Argo Group’s “ongoing strategic review.”  On this news, the price of Argo Group common stock fell nearly 14% and fell an additional 17.5% the following trading day.

Finally, on August 10, 2022, based on concerns with the Loss Portfolio Transfer agreement that Argo Group entered into with a wholly-owned subsidiary of Enstar Group Limited just two days before, an analyst at Raymond James downgraded Argo Group to Market Perform from Outperform, noting that “there are now additional uncertainties associated with the $75M loss corridor retention which could act as overhang on the outlook for the next 12-24 months.”  On this news, the price of Argo Group common stock fell an additional 28.3%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Argo Group common stock during the Class Period to seek appointment as lead plaintiff in the Argo Group class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Argo Group class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Argo Group class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Argo Group class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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