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Investors who purchased AmTrust Financial Services Inc. common stock issued in or traceable to the company's November 2015 public offering or AmTrust 6.95% noncumulative preferred stock, Series F, issued in or traceable to its September 2016 public offering may be eligible to claim a cash payment from a class action settlement.
AmTrust, certain officers and directors and the underwriters of the offerings agreed to pay $19 million to partially settle a securities class action lawsuit alleging they made materially false and misleading statements and omitted material facts in the offering documents for these two stocks in violation of the federal securities laws. The partial settlement resolves claims against the settling defendants only, and the litigation continues against non-settling defendant, BDO USA P.C.
Who can file a claim?
The settlement includes individuals and entities who purchased AmTrust common stock issued in or traceable to the November 2015 offering or AmTrust 6.95% noncumulative preferred stock, Series F, issued in or traceable to the September 2016 offering, and incurred damages as a result.
Additional details
- Both individuals and entities can be class members.
- The actual beneficial purchaser or a legal representative must submit the claim.
- All joint purchasers must sign the claim form.
- Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of their authority.
- Each separate legal entity must submit one claim form covering the transactions in all of its accounts.
How much can class members get?
The total settlement fund is $19,000,000. The amount each class member will receive depends on several factors:
- The number of valid claims submitted
- The number of shares purchased in or traceable to each offering
- The timing of each purchase, sale and holding
- The total recognized losses of all claimants
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average distribution is approximately $2.09 per common share and $0.45 per Series F preferred share before deductions for taxes, notice and administration costs, and attorneys' fees and expenses.
- If the court approves the requested attorneys' fees and expenses, the average cost will be approximately $0.76 per common share and $0.16 per Series F preferred share,for an estimated net average recovery of approximately $1.33 per common share and $0.29 per Series F preferred share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will allocate at least two-thirds of the net settlement fund to common stock claims and no more than one-third to Series F preferred stock claims.
- The settlement administrator will calculate a recognized loss amount for each documented purchase using the statutory damages formula under Section 11(e) of the Securities Act:
- For shares of common stock purchased in or traceable to the November 2015 offering and sold before Feb. 27, 2017, the recognized loss is $0.
- For common stock shares sold from Feb. 27, 2017, through April 28, 2017, the recognized loss is $27.66 minus the sale price per share.
- For common stock shares sold from April 29, 2017, through July 26, 2017, the recognized loss is $27.66 minus the sale price per share (up to $11.61 per share).
- For common stock shares held at the end of July 26, 2017, the recognized loss is $11.61 per share.
- For shares of Series F preferred stock purchased in or traceable to the September 2016 offering from Sept. 21, 2016, through April 10, 2017, and sold before Feb. 27, 2017, the recognized loss is $0.
- For Series F preferred shares sold from Feb. 27, 2017, through April 28, 2017, the recognized loss is the purchase price per share (up to $25) minus the sale price per share.
- For Series F preferred shares sold from April 29, 2017, through Nov. 10, 2017, the recognized loss is the purchase price per share (up to $25) minus the greater of the sale price per share or $22.10.
- For Series F Preferred shares held at the end of Nov. 10, 2017, the recognized loss is the purchase price per share (up to $25) minus $22.10.
- If a recognized loss amount calculates to zero or a negative number, the settlement administrator will set it to zero.
- If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
- Class members whose payment would be less than $10 will not receive a payout.
How to claim an AmTrust securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Oct. 7, 2026.
Settlement administrator's mailing address: AmTrust Securities Litigation, Claims Administrator, c/o Verita Global, P.O. Box 301171, Los Angeles, CA 90030-1171
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide transaction information for their AmTrust shares, including:
- Trade dates
- Number of shares purchased or sold and the total purchase or sale price
- Number of common stock shares held at the close of trading on Nov. 10, 2015, and July 26, 2017
- Number of Series F Preferred stock shares held at the close of trading on Sept. 20, 2016, and Nov. 10, 2017
Class members must also provide documentation to support their transactions in AmTrust securities. Acceptable proof includes:
- Broker confirmation slips
- Broker statements
- Other documents adequately evidencing transactions in AmTrust common stock or Series F Preferred stock
Payout options
- Physical check
- Electronic payment
$19 million settlement fund
The $19,000,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $6,333,333.33
- Attorneys' expenses: Up to $550,000
- Service awards to plaintiffs: Up to $40,000 total
- Payments to eligible class members: Remainder of the fund
Important dates
- Deadline to file a claim: Oct. 7, 2026
- Opt-out deadline: Oct. 28, 2026
- Fairness hearing: Nov. 19, 2026
When is the AmTrust securities class action settlement payout date?
The settlement administrator will issue payments after it completes claims processing and the court resolves any appeals and grants final approval to the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged AmTrust, certain officers and directors and the underwriters of the offerings made materially false and misleading statements and omitted material facts in the offering documents for the November 2015 common stock offering and September 2016 Series F preferred stock offering, in violation of the federal securities laws. The plaintiffs claimed these statements harmed investors who purchased shares issued in or traceable to the offerings.
The settling defendants denied all allegations of wrongdoing, liability and damages but agreed to settle to avoid the costs, risks and uncertainty of continued litigation. The partial settlement does not resolve the plaintiffs' claims against non-settling defendant BDO USA P.C., and there is no guarantee of any further recovery.
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