Investor Alert: Kaplan Fox Investigates Hallmark Financial Services For Potential Securities Fraud

NEW YORK, May 19, 2020 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Hallmark Financial Services ("Hallmark Financial" or the "Company") (NASDAQ: HALL) that purchased Hallmark Financial securities between March 5, 2019 and March 17, 2020, inclusive (the "Class Period").

On March 2, 2020, Hallmark Financial announced that it was exiting its Binding Primary Commercial Auto business and reported a $63.8 million loss development for prior underwriting years.  On March 3, 2020, Hallmark Financial's shares fell $2.10 per share, over 14%, to close at $12.23 per share.

On March 11, 2020, Hallmark Financial disclosed that it had dismissed its independent auditor, BDO USA, LLP in connection with a disagreement regarding estimates for reserves for unpaid losses.  Following this news, Hallmark Financial's shares fell $2.39 per share, over 29%, to close at $5.71 per share on March 12, 2020. 

Then, on March 17, 2020, Hallmark Financial filed a letter from BDO with the SEC in which BDO states: "BDO expanded significantly the scope of its audit on January 31, 2020, with respect to which a  substantial portion of the requests had not been received and/or tested prior to our termination." 

If you are a member of the proposed Class, you may move the court no later than July 6, 2020 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 646-315-9003.

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

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, your rights, or your interests, please contact:

Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: dhall@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com

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SOURCE Kaplan Fox & Kilsheimer LLP