Cases
National General Holdings Corp. (NGHC)
Securities Class Action
Overview
Overview
- Date:
- 4/29/2019
- Company Name:
- National General Holdins Corp.
- Stock Symbol:
- NGHC
- Status:
- Closed/Complete
NEW YORK, October 4, 2019 – Bragar Eagel and Squire is investigating certain officers and directors of National General Holdings Corp. (NASDAQ: NGHC) following a class action complaint that was filed against National General on July 25, 2019.
The complaint alleges that during the class period, defendants made false and misleading statements and/or failed to disclose adverse information regarding National General’s business and operations. Specifically, the complaint alleges that defendants failed to disclose that National General, together with banking giant Wells Fargo, had engaged in a massive insurance scheme to bilk Wells Fargo customers out of millions of dollars. Through this scheme, National General forced thousands of customers to pay for auto insurance commonly known as Collateral Protection Insurance (“CPI”) that they did not need or want. National General served as Wells Fargo’s CPI vendor for all aspects of the program from July 2015 until the program was discreetly terminated in September 2016. Defendants possessed information showing that these customers already had their own insurance, but forced them to be subject to redundant, unnecessary, and overly expensive CPI policies anyway. In addition, while defendants were concealing their participation in the fraudulent CPI scheme from investors, they were reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme. As a result of this information being withheld from the market, National General common stock traded at artificially inflated prices of more than $25 per share during the Class Period.
If you are a long-term stockholder of National General securities, have information, 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 Fortunato 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 alleges that during the class period, defendants made false and misleading statements and/or failed to disclose adverse information regarding National General’s business and operations. Specifically, the complaint alleges that defendants failed to disclose that National General, together with banking giant Wells Fargo, had engaged in a massive insurance scheme to bilk Wells Fargo customers out of millions of dollars. Through this scheme, National General forced thousands of customers to pay for auto insurance commonly known as Collateral Protection Insurance (“CPI”) that they did not need or want. National General served as Wells Fargo’s CPI vendor for all aspects of the program from July 2015 until the program was discreetly terminated in September 2016. Defendants possessed information showing that these customers already had their own insurance, but forced them to be subject to redundant, unnecessary, and overly expensive CPI policies anyway. In addition, while defendants were concealing their participation in the fraudulent CPI scheme from investors, they were reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme. As a result of this information being withheld from the market, National General common stock traded at artificially inflated prices of more than $25 per share during the Class Period.
If you are a long-term stockholder of National General securities, have information, 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 Fortunato 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.