The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Hallmark Financial Services, Inc. (NASDAQ: HALL) who purchased shares between March 5, 2019 and March 17, 2020. The action, which was filed in the United States District Court for the Nothern District of Texas, alleges that the Company violated federal securities laws.
In particular, the Hallmark Financial lawsuit alleges that (1) the Company lacked effective internal controls over accounting and financial reporting related to reserves for unpaid losses; (2) the Company improperly accounted for reserve for unpaid losses and loss adjustment expenses related to its Binding Primary Commercial Auto business; (3) as a result, Hallmark Financial would be forced to report a $63.8 million loss development for prior underwriting years; (4) as a result, Hallmark Financial would exit from its Binding Primary Commercial Auto business; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Shareholders have until July 6, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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