Cases
The Allstate Corporation (NYSE : ALL)
Securities Class Action
Overview
Overview
- Date:
- 11/11/2016
- Company Name:
- The Allstate Corporation
- Stock Symbol:
- ALL
- Class Period:
- FROM 2/25/2014 TO 11/3/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: District of Northen Illinois
NEW YORK, November 11, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Illinois Northern District Court on behalf of all persons or entities who acquired the Allstate Corporation (NYSE: ALL) securities between February 25, 2014 to November 3, 2016 (the “Class Period”).
The complaint charges Allstate and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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.
If you acquired Allstate securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
The complaint charges Allstate and certain of its officers and directors with violations of the Securities Exchange Act of 1934. 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.
If you acquired Allstate securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.