Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Argo Group International Holdings, Ltd. (“Argo” or the “Company”) (NYSE: ARGO) in the United States District Court for The Southern District Of New York on behalf of all persons and entities who purchased or otherwise acquired Argo securities between January 7, 2020 and August 8, 2022, both dates inclusive (the “Class Period”). Investors have until December 20, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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Less than three months after assuring investors of “continued strong growth in the ongoing business,” on February 8, 2022, Argo issued a press release announcing that its fourth quarter results for 2021 (“4Q21”) would be negatively impacted by $130 to $140 million worth of adverse prior year reserve development and non-operating charges. Specifically, the Company disclosed that:
Argo expects net adverse prior year reserve development to be in the range of $130 million to $140 million for the 2021 fourth quarter. Prior year adverse development was the result of the recently concluded fourth quarter 2021 reserve review. The largest reserve increases were related to construction defect claims within Argo’s U.S. Operations, in addition to reserve increases in the Run-off segment. The prior year reserve increase for construction defect primarily related to the 2017 and prior underwriting years in business lines that have either been significantly remediated or discontinued.
Argo announced additional non-operating charges of $60 million to $70 million resulting in part from Argo’s “ongoing strategic review.”
On this news, the price of the Company’s common stock fell $7.11 per share, or 13.7%, to close at $44.76 per share on February 9, 2022. On February 10, the stock declined to $42.82 per share, for a two-day drop of $9.05 per share, or 17.5%, wiping out over $315 million in market capitalization.
If you purchased or otherwise acquired Argo shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.