National General Holdings Corp. (NGHC)
Hagens Berman alerts investors in National General Holdings Corp. (NASDAQ: NGHC) to the firm’s investigation into possible securities law violations related to NGHC’s auto insurance business.
If you purchased or otherwise acquired securities of NGHC before August 8, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing NGHC@hbsslaw.com.
On August 8, 2017, California Insurance Commissioner Dave Jones issued a press release entitled “Commissioner Jones orders investigation of allegations Wells Fargo and National General Insurance unlawfully signed up consumers for auto insurance.”
More specifically, Commissioner Jones opened an investigation into recent allegations that Wells Fargo and National General Insurance improperly charged consumers for “force-placed” or “lender-placed” auto insurance. Force-placed or lender-placed insurance refers to insurance a lender requires a borrower to purchase by signing up the borrower for the insurance to cover the vehicle in case the borrower fails to get their own insurance or allows their auto insurance to lapse.
This news drove the price of NGHC shares down $1.47, or over 7%, to close at $19.08 on August 8, 2017.
“We’re focused on whether NGHC’s senior management was aware of the problems a year ago, as Wells’ management reportedly was ,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding NGHC should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email NGHC@hbsslaw.com.
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