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Case Status:    SETTLED
On or around 03/21/2017 (Date of order of distribution of settlement)

Filing Date: August 20, 2013

According to the law firm press release, Tower is a Bermuda-based insurance and reinsurance holding company that offers commercial, personal and specialty insurance products and services in the U.S. through its U.S. insurance subsidiaries and also offers reinsurance products globally.

The complaint alleges that during the Class Period Tower and certain controlling individuals of Tower made fraudulent material misrepresentations and omissions regarding Tower's business and operations. Among other things, the complaint alleges that defendants materially misrepresented and/or failed to disclose the following adverse facts: (i) that the Company failed to properly estimate its loss reserve provisions as required by Generally Accepted Accounting Principles, and (ii) that the Company failed to properly allocate its goodwill and certain deferred tax assets.

On August 7, 2013, Tower issued a press release announcing that it was postponing the release of its financial results for the second quarter of 2013 and its previously scheduled conference call to discuss the results, originally scheduled for August 8, 2013. In the press release, the Company stated that, "additional time is needed to review matters relating to the estimate of its loss reserves and, primarily due to the integration of the Canopius Bermuda merger, its allocation of goodwill and certain tax accounts." The Company also stated that it does not expect to file its quarterly report on Form 10-Q for the quarter ended June 30, 2013 by the required filing date of August 9, 2013. On August 8, 2013, the Company provided guidance on its second quarter 2013 results wherein it disclosed that the Company may record adverse reserve development of $60 million to $110 million pre-tax. The Company also disclosed that it had hired an independent actuarial firm to review selected areas of its loss reserves as of June 30, 2013. Following this news, the price of Tower's shares dropped $5.20 per share, or more than 24%, to a closing price of $16.41 per share on August 8, 2013. On August 9, 2013, the Company filed a Notification of Late Filing on Form 12b-25 with the United States Securities and Exchange Commission. On August 13, 2013, the rating agency A.M. Best Co. put the ratings of the subsidiaries of Tower under review with negative outlook. The negative rating action also reflects the ratings agency's concern about an anticipated prior-year loss reserve charge of approximately $60 million to $110 million pre-tax. The Company's results might suffer from reserve leverage and the increased uncertainty with respect to future reserve charges.

On July 21, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on August 13. Final judgment was entered on November 23.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Prop. & Casualty)
Headquarters: Bermuda

SECURITIES INFORMATION:

Ticker Symbol: TWGP
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 13-CV-05852
JUDGE: Hon. Analisa Torres
DATE FILED: 08/20/2013
CLASS PERIOD START: 07/30/2012
CLASS PERIOD END: 08/08/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gardy & Notis, LLP
    501 Fifth Avenue, Suite 1408, Gardy & Notis, LLP, NY 10017
    212-905-0509 212-905-0508 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 13-CV-05852
JUDGE: Hon. Analisa Torres
DATE FILED: 12/23/2014
CLASS PERIOD START: 03/01/2010
CLASS PERIOD END: 12/17/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard LLP (New York)
    10 East 40th Street, 22nd Floor, Bernstein Liebhard LLP (New York), NY 10016
    212.779.1414 212.779.1414 ·
  2. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  3. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
No Document Title Filing Date