New York insurer Kingstone Companies Inc has won dismissal of a proposed shareholder class action accusing it of concealing risky underwriting practices and failing to maintain adequate loss reserves from 2018 to 2019.
The lawsuit, filed last year by investor Phillip Woolgar in Manhattan federal court, cited information from six confidential sources in the company. It said the company’s risky practices came to light April 2019, when it announced a $5 million loss reserve charge, resulting in a stock drop of about 15% and losses to investors.
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