View this article online: https://www.claimsjournal.com/news/southcentral/2003/04/29/28372.htm
Dallas-based GAINSCO INC. was hit with a class action lawsuit, filed in the United States District Court for the Southern District of Florida on behalf of purchasers of the company’s publicly traded securities during the period between November 17, 1999 and February 7, 2002, according to the Law Firm of Cauley Geller Bowman Coates & Rudman LLP, which filed the suit.
The complaint alleges that during the class period, defendants issued false and misleading statements to the marketplace that artificially inflated the price of GAINSCO’s shares. Specifically, on November 17, 1999, GAINSCO, an insurance holding company, announced that it would acquire Tri-State Ltd.’s privately-owned insurance operation which specialized in nonstandard passenger automobile insurance. According to CEO Anderson, the Tri-State acquisition marked the company’s expansion of its passenger auto insurance business that began with GAINSCO’s earlier purchase of Miami-based Lalande Group.
Among other things, the lawsuit concerns statements made by the company regarding Tri- State and the integration of its business with Lalande Group’s underwriting and claims systems during the period named in the complaint.