SAN DIEGO, March 9, 2018 /PRNewswire/ -- Johnson Fistel, LLP is investigating potential violations of the federal and state securities laws by The Allstate Corporation (NYSE: ALL) ("Allstate") and certain of its officers
A Securities Class Action Complaint was filed on behalf of those who purchased securities of Allstate between October 29, 2014, and August 3, 2015. According to the lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that the reason for the sudden spike in its auto claims frequency, which defendants claimed was due to external events beyond the Allstate's control, was actually the result of Allstate's growth in its auto policy business through higher risk drivers. On August 3, 2015, Allstate reported disappointing second-quarter 2015 financial results, including a third consecutive quarter of increased auto claims frequency, a 57% decline in operating income, and operating earnings per share that were $0.34 below analysts' consensus estimate. On that same day, Allstate's CEO stated that the lower quarterly profit was "driven by a deterioration in auto insurance margins" and explained that "[a]uto insurance margins decreased as higher claim frequency and severity more than offset average auto insurance price increases." On February 27, 2018, the courts denied Allstate's motion to dismiss, paving the way for litigation to carry on.
If you have held Allstate shares continuously before October 29, 2014, you may have standing to hold Allstate harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance to prevent future wrongdoing.
If you are an Allstate shareholder continuously holding shares before October 29, 2014, and are interested in learning more about your legal rights and remedies, please contact Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If you email, please include your phone number.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
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