Robbins Geller Secures $28 Million Recovery for ProAssurance Investors

On Wednesday, January 17, 2024, Robbins Geller Rudman & Dowd LLP attorneys and co-counsel secured a “particularly noteworthy” $28 million recovery for ProAssurance Corporation investors.

ProAssurance is a Birmingham, Alabama-based holding company that provides insurance, including healthcare professional liability insurance. The case resolves allegations that ProAssurance and certain executives misled investors by concealing the company’s deviation from its purportedly conservative underwriting and reserve practices in connection with an undisclosed insurance policy issued to a large national healthcare provider.

In its opinion partially denying defendants’ motion to dismiss, the court noted that “ProAssurance and its officers emphasized the company's ‘disciplined approach to business’ to investors . . . highlighting its conservative underwriting, risk-averse reserves practices, and reinsurance protection, which were designed to limit the company's liability on the insurance policies it issued.”

But the company allegedly underwrote an especially large, “‘unusual, particularly risky’” policy for an undisclosed healthcare provider, which experienced significant losses. The company’s leadership allegedly concealed these issues and deviated from ProAssurance’s stated reserve practices in connection with the account, which led to ProAssurance’s stock price being artificially inflated.

ProAssurance’s motion to dismiss the case was rejected in part in December 2021.

In approving the class recovery, Judge R. David Proctor of the U.S. District Court for the Northern District of Alabama commended counsel for the class for having “conducted the Litigation and achieved the Settlement with skill, perseverance, and diligent advocacy, and with considerable challenges from formidable opposition.”

Robbins Geller attorneys for the class include partners X. Jay Alvarez and Nathan R. Lindell.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex litigation firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms, and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history.

The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. The Firm secured the largest-ever securities fraud class action settlement – $7.2 billion – in In re Enron Corp. Securities Litigation.

For media inquiries, please contact media@rgrdlaw.com or call (619) 338-3821.

Sheet Metal Workers Local 19 Pension Fund v. ProAssurance Corporation, No. 2:20-cv-00856 (N.D. Ala.).