The information contained on this web page is only a summary of information presented in more detail in the Notice of Proposed Class Action Settlement. (the “Notice”), which you can access by clicking here. Since this website is just a summary, you should review the Notice for additional details.
To: All persons who purchased or otherwise acquired AmTrust Financial Services, Inc. (“AmTrust”) preferred stock on a U.S. open market during the class period of January 22, 2018 through January 18, 2019, both dates inclusive
There has been a proposed Settlement in the class action Martínek v. AmTrust Financial Services, Inc., et al., No. 19-cv-8030-KPF (the “Litigation”) pending in the U.S. District Court for the Southern District of New York. The Settlement would resolve the Litigation, in which Plaintiff alleges that AmTrust and certain of its directors (“Defendants”) violated federal securities laws by making false and misleading statements during the Class Period regarding whether AmTrust’s preferred stock would remain listed in the New York Stock Exchange. Defendants deny all allegations of wrongdoing or liability, and this notice expresses no opinion by the Court as to the Litigation’s merits.
What is the Proposed Settlement? Defendants have agreed to pay $13,000,000, after deduction of any Court-approved attorneys’ fees and expenses, notice and administration costs, taxes, or any award to Plaintiff for his service to the Class and for his costs and expenses (including lost wages) relating to his representation of the Class (“Plaintiff Award”), to be divided among all Class Members who submit a valid Claim Form, in exchange for a release of all claims related to this Litigation. Your share of the Settlement proceeds will depend on the size and timing of your transactions in AmTrust preferred stock and will be determined pro rata based on the number of claims submitted. For all details of the Settlement, please read the Stipulation and Agreement of Settlement
and the Notice of Proposed Class Action Settlement.
Court Settlement Hearing. The Court will hold a hearing on this case on November 16, 2022 at 3:00 p.m. to consider whether (1) the Court should approve: (a) the proposed Settlement as fair, reasonable, and adequate; (b) the Plan of Allocation of Settlement funds as fair, reasonable, and adequate; (c) the request by the lawyers representing the Class for up to 33.33% of the Settlement recovery in attorneys’ fees ($4,332,900), plus costs and expenses of up to $460,000.00; (d) the request for a Plaintiff Award of up to $15,000; and (2) the Court should dismiss the Litigation with prejudice, as provided in the Settlement Agreement. You may attend the hearing and ask to be heard by the Court, but you do not have to. If you wish to object to the terms of the Settlement or any of Counsel’s requests, your objection must be in writing pursuant to the requirements in the Notice, and be received by October 26, 2022.
SETTLEMENT HAS BEEN APPROVED. PLEASE VIEW WEBSITE FOR UPDATES TO THE DISTRIBUTION.
Your legal rights are affected whether you act or don’t act
| YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT |
| SUBMIT A CLAIM FORM, POSTMARKED (IF MAILED), OR ONLINE NO LATER THAN DECEMBER 13, 2022 | You must submit a Proof of Claim and Release Form (“Claim Form”), either by mail or online, pursuant to the instructions below, to receive a payment under the Settlement. If you submit a Claim Form and supporting documentation, the Claims Administrator – A.B. Data, Ltd. – will determine if you are entitled to a payment under the Settlement. |
| OBJECT TO THE SETTLEMENT OR ANY RELATED ASPECT, TO BE RECEIVED NO LATER THAN OCTOBER 26, 2022 | If you do not like the proposed Settlement, the Plan of Allocation, or any of Lead Counsel’s Requests, you may write to the Court and explain why. Even if you object to the Settlement, you can still submit a Claim Form as long as you do not opt out. You must submit a Claim Form if you want money from the Settlement Fund. |
| SUBMIT A REQUEST FOR EXCLUSION, TO BE RECEIVED NO LATER THAN OCTOBER 26, 2022 | If you exclude yourself (i.e. “opt out”) from this case, you will not get any of the benefits of the Settlement (i.e., no money from the Settlement Fund). But you will retain the right to sue Defendants on your own, at your own expense, relating to the statements they made during the Class Period. |
| GO TO THE HEARING (SCHEDULED FOR NOVEMBER 16, 2022) | You may ask to speak in Court about the fairness of the Settlement, the Plan of Allocation, or any of Lead Counsel’s Requests. The conference scheduled for 11/16/2022 at 3:00 p.m. will be held via video conference with public audio access at (646) 453-4442, Conference ID 578 950 959#. |
| DO NOTHING | If you do nothing, you will not get any money from the Settlement Fund, AND you give up all your rights to sue Defendants on your own about the legal issues in this case. |
For more information, you may contact the Claims Administrator at AmTrust Preferred Stock Litigation, c/o A.B. Data, Ltd., P.O. Box 173022, Milwaukee, WI 53217, at 1-877-354-3878 (Toll Free), or at info@AmTrustPreferredStockLitigation.com; or contact Lead Counsel, Carl L. Stine of Wolf Popper LLP at 845 Third Avenue, New York, New York 10022, or at 212-759-4600.