NEW YORK, NY / ACCESSWIRE / December 28, 2016 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a securities class action has been filed against The Allstate Corporation ("Allstate" or the "Company") (NYSE: ALL) and certain of its officers. This class action is on behalf of a class consisting of all persons who purchased Allstate between October 30, 2014 and August 3, 2015, both dates inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Allstate is the largest publicly traded personal lines insurance company in the United States. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993. The company has had its headquarters in Northfield Township, Illinois, near Northbrook since 1967.
The complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements and/or failed to disclose adverse information about its business and prospects. Specifically, the complaint alleges that Defendants omitted information about the sudden spike in its auto claims frequency, that defendants attributed to external events beyond its control, including weather and increased miles driven as factors, when actually the result of Allstate's auto policy growth was due to higher risk drivers. As an outcome of the Company's false statements and/or omissions, Allstate stock traded at artificially inflated prices during the Class Period, reaching a high of $72.58 per share. During this time, some Company insiders, including its CEO, sold their Allstate shares at artificially inflated prices.
On August 3, 2015, post-market, Allstate revealed its discouraging 2015 second quarter financial results. This was Allstate's third consecutive quarter of increased auto claims frequency, and also listed a 57% drop in operating income, and operating earnings per share that were $0.34 below analysts' projections. Following Allstate's release, the CEO said that its lower quarterly profit was "driven by a deterioration in auto insurance margins" and continued to say that "[a]uto insurance margins decreased as higher claim frequency and severity more than offset average auto insurance price increases." Following these releases, Allstate stock dropped $7.04 per share and close at $62.34 per share on August 4, 2015.
No Class has yet been certified in the above action. To discuss this action, or for any questions, please visit the firm's site: http://www.bgandg.com/all or contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Allstate, you have until January 9, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
ReleaseID: 448843
