SHAREHOLDER DEADLINE REMINDER: Scott+Scott Attorneys at Law LLP Informs Investors That a Securities Class Action Has Been Filed Against Argo Group International Holdings Ltd (ARGO)

New York, New York--(Newsfile Corp. - December 15, 2022) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, reminds investors who purchased Argo Group International Holdings Ltd (NYSE: ARGO) ("Argo" or the "Company") securities between February 13, 2018 through August 9, 2022, inclusive (the "Class Period"), and who suffered damages, that the deadline to move for lead plaintiff in a securities class action lawsuit against Argo and certain other defendants is December 19, 2022.

If you purchased Argo shares during the Class Period, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312, or jzimmerman@scott-scott.com, for more information.

CLICK HERE TO JOIN THIS CLASS ACTION

The complaint was filed in the U.S. District Court for the Southern District of New York, Argo and certain of its directors and officers violated §§10(b) and 20(a) of the Securities and Exchange Act of 1934 (the "Exchange Act").

Argo underwrites international specialty insurance products in the property and casualty markets. Specifically, the Company claims to target "niche" markets in order to develop a leadership position and generate "superior underwriting profits." Argo operates under two reporting segments, a U.S. segment and an International segment. The segment operating in the U.S. was historically considered Argo's "crown jewel."

In the U.S., Argo purports to be a leader in the Excess and Surplus lines ("E&S") focusing on risks that the standard market is unwilling or unable to underwrite. Due to the inherently risky nature of its specialty insurance business, investors valued the Company's ability to properly reserve for losses. Therefore, any statements about Argo's underwriting and reserve policies were highly material to investors.

During the Class Period, Defendants assured investors that they had closely monitored Argo's policies and could set appropriate reserves. Defendants cultivated a narrative that Argo had a long history of successfully managing its reserves and the Company had a "prudent reserving philosophy."

For example, Defendant Mark E. Watson, III, who was Argo's CEO from 2000 until November 5, 2019, touted Argo's long-term favorable reserve development during the Company's earnings conference call for the fourth quarter of 2017 ("4Q17"), stating that "you can see that for the 13th year in a row we've had reserve redundancies on our balance sheet and I believe that this is also true for the last 14 out of 15 years." This statement was echoed throughout the Class Period in repeated assurances about the Company's reserves.

However, this statement, and other similar ones, were false and misleading because: (1) Argo's reserves were wholly inadequate and its underwriting standards were not prudent as was represented; (ii) Argo had dramatically changed its underwriting policies on certain U.S. construction contracts as far back as 2018; and (iii) these policies were underwritten outside of the Company's "core" business including in certain states and for certain exposures that were far riskier than investors understood and that the Company no longer would service moving forward.

Ultimately, the effects of the changes in policies, all of which were known to Defendants during the Class Period, led to massive and belatedly-disclosed adverse reserve developments.

Between February 2022, when Argo announce that its results for the fourth quarter of 2021 would be negatively impacted by $130 to $140 million worth of adverse prior year reserve development and non-operating charges, and August 2022, when Defendants announced further bad news regarding the Company's U.S. casualty reserves, Argo's share price declined precipitously, losing more than 60% in value to date in 2022.

As a result of Defendant's wrongful acts, and the precipitous decline in the market value of the Company's securities, the class of investors Plaintiff seeks to represent has suffered significant losses and damages.

Lead Plaintiff Deadline

The Lead Plaintiff deadline in this action is December 19, 2022. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

What You Can Do

If you purchased Argo shares during the Class Period, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.

Attorney Advertising

CONTACT:
Scott+Scott Attorneys at Law LLP
Jonathan Zimmerman
(888) 398-9312
jzimmerman@scott-scott.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/148216