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Atlas Financial facing class action complaint related to reserve strengthening

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Atlas Financial facing class action complaint related to reserve strengthening

Atlas Financial Holdings Inc., CEO Scott Wollney and CFO Paul Romano Jr. are facing a class action complaint after the company announced that it strengthened its reserves.

The complaint alleges that the company made false and/or misleading statements and failed to disclose material adverse facts about the company's business, operations and prospects, including failing to employ internal controls to ensure appropriate accounting practices related to the calculation of certain loss reserves. As a result, Atlas Financial's internal controls over financial reporting were allegedly materially weak and its financial statements were allegedly inaccurate and misleading.

The complaint claims that investors suffered significant losses and damages because of Atlas Financial's "wrongful acts and omissions" and the "precipitous decline" in the market value of the company's securities.

The complaint was filed in the United States District Court for the Northern District of Illinois on behalf of investors that bought Atlas Financial's securities between March 13, 2017, and March 2, 2018.

The complaint seeks compensatory damages and demands a trial by jury.

Atlas Financial did not immediately respond to a request for comment.