Case Page

 

Case Status:    ONGOING    
On or around 09/12/2017 (Ongoing date of last review)

Filing Date: November 10, 2016

According to the law firm press release, Allstate is the largest publicly traded personal lines insurance company in the United States. Personal lines insurance includes homeowner, renter, motorcycle and auto insurance.

The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding the Company's business and prospects, including that the reason for the sudden spike in its auto claims frequency, which defendants claimed was due to external events beyond the Company's control, including the weather and increased miles driven, was actually the result of Allstate's growth in its auto policy business through higher risk drivers. As a result of defendants' false statements and/or omissions, Allstate stock traded at artificially inflated prices during the Class Period, reaching a high of $72.58 per share, and certain of the Company's insiders, including its CEO, were able to sell their Allstate shares at artificially inflated prices.

Then on August 3, 2015, after the market closed, Allstate announced disappointing second quarter 2015 financial results, reporting a third consecutive quarter of increased auto claims frequency, a 57% decline in operating income, and operating earnings per share that were $0.34 below analysts' consensus estimate. Following the earnings release, the Company's CEO stated that the lower quarterly profit was "driven by a deterioration in auto insurance margins" and explained that "[a]uto insurance margins decreased as higher claim frequency and severity more than offset average auto insurance price increases." As a result of these revelations, the price of Allstate stock fell $7.04 per share to close at $62.34 per share on August 4, 2015.

On January 17, 2017, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed a Consolidated Complaint on March 30.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: ALL
Company Market: New York SE
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: N.D. Illinois
DOCKET #: 16-CV-10510
JUDGE: Hon. Robert W. Gettleman
DATE FILED: 11/10/2016
CLASS PERIOD START: 10/30/2014
CLASS PERIOD END: 08/03/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP
    200 S. Wacker Drive Suite 3100 , Robbins Geller Rudman & Dowd LLP , IL 60606
    312.674.4674. 312.674.4674. ·
  2. VanOverbeke Michaud & Timmony, P.C.
    79 Alfred Street, VanOverbeke Michaud & Timmony, P.C., MI 48201
    313.578.1200 313.578.1200 ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 16-CV-10510
JUDGE: Hon. Robert W. Gettleman
DATE FILED: 03/30/2017
CLASS PERIOD START: 10/29/2014
CLASS PERIOD END: 08/03/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  2. Pomerantz LLP (Chicago)
    10 South LaSalle Street, Suite 3505 , Pomerantz LLP (Chicago), IL 60603
    312-377-1181 312-377-1184 ·
No Document Title Filing Date