HAGENS BERMAN: Motion to Dismiss in Securities Fraud Class Action Lawsuit Against Hallmark (HALL) Fully Briefed, Individuals with Non-Public Information Encouraged to Contact Firm
SAN FRANCISCO, Feb. 9, 2021 /PRNewswire/ -- Court-appointed Lead Counsel Hagens Berman alerts class members that Defendants' motion to dismiss a securities class action against Hallmark Financial Services, Inc. (NASDAQ: HALL) is now fully briefed. The Court's order on the motion may pave the way for Lead Plaintiff to obtain discovery. In the meantime, the Firm encourages individuals with relevant, non-public information regarding Hallmark to contact the firm now.
Hallmark Financial Services, Inc. (HALL) Securities Class Action:
The action, captioned Schulze v. Hallmark Financial Services, Inc., et al., No. 3:20-cv-1130-X, was filed in the United States District Court for the Northern District of Texas on May 5, 2020, on behalf of all investors who purchased or otherwise acquired the publicly-traded common stock of Hallmark during the period from March 5, 2019, through March 17, 2020, inclusive (the "Class Period").
If you have information regarding Hallmark's alleged fraud, Hagens Berman wants to hear from you. Individuals with non-public information regarding Hallmark are encouraged to contact the firm by emailing HALL@hbsslaw.com or by calling 844-916-0895.
As alleged in the Amended Complaint, throughout the Class Period, Defendants misrepresented and concealed that: (1) Hallmark deliberately and systematically manipulated and understated loss reserves in order to overstate its reported net income during the Class Period; and (2) lacked effective internal accounting controls to prevent such manipulation.
Investors began to learn the truth, according to the complaint, through a series of disclosures in Mar. 2020, when Hallmark revealed it (1) was exiting the Binding Primary Commercial Auto business; (2) had reported a $63.8 million loss development for prior underwriting years; and (3) fired its independent auditor BDO over a "disagreement" concerning the Company's estimated reserves for unpaid losses and loss adjustment expenses throughout 2019.
These disclosures caused Hallmark shares to decline over 75% between Mar. 2 and Mar. 18, 2020.
On July 21, 2020, Hagens Berman was named lead counsel in the case by the Honorable Brantley Starr.
On Sep. 30, 2020, Hagens Berman filed an amended complaint.
On December 4, 2020, Defendants filed their motion to dismiss the complaint. As of February 8, 2021, that motion is fully briefed and pending before the Court. The Court's order on the motion may allow Lead Plaintiff to obtain documents and testimony from Defendants and other relevant parties.
In the interim, the Firm encourages individuals with relevant, non-public information regarding Hallmark to contact the firm now.
For more information about the case visit: http://www.hbsslaw.com/cases/HALL
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
HALL@hbsslaw.com, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP
