Deadline Reminder

The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against ProAssurance Corporation (PRA)

Law Offices of Howard G. Smith reminds investors of the upcoming August 17, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased ProAssurance Corporation (“ProAssurance” or the “Company”) (NYSE: PRA) common stock between April 26, 2019 and May 7, 2020, inclusive (the “Class Period”).

Investors suffering losses on their ProAssurance investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [e-mail].

On January 22, 2020, after the market closed, ProAssurance disclosed a $37 million charge to its loss reserves for fourth quarter 2019 due to "deteriorating loss experience, driven by a large national healthcare account."

On this news, the Company's stock price fell $4.18, or 11%, to close at $33.40 per share on January 23, 2020, thereby injuring investors.

On February 20, 2020, the Company announced its 2019 fourth quarter and full year results which revealed that the adverse development from this one large national healthcare account was actually $51.5 million, much higher than the initial estimate a month prior, of $37 million.

Then, on May 8, 2020, ProAssurance revealed that the large healthcare client would most likely not be renewing its policy and alternately exercise an option for tail coverage that would result in an additional $50 million in losses in the second quarter of 2020. This loss, when combined with the $51.5 million adverse development, meant that the Company would suffer over $100 million in losses from a single account.

On this news, the Company’s stock price fell $4.38 per share, or over 22%, to close at $15.95 per share on May 8, 2020, thereby injuring investors.

The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty P&C segment; (2) that ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten; and (3) that as a result, ProAssurance was subject to a materially heightened risk of financial loss and reserve charges.

If you purchased or otherwise acquired ProAssurance common stock, you may move the Court no later than August 17, 2020, to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200623005131/en/