AmTrust Financial Services Must Face Investors’ Stock Suit

Amtrust Financial Services Inc. will face a putative class of investors claiming the company misled them about whether its preferred stock would remain on the New York Stock Exchange following a 2018 merger, after a New York federal court refused to dismiss the complaint Friday.

The class suit, filed in the U.S. District Court for the Southern District of New York, alleged investors suffered losses when individual AmTrust executives--also named defendants--bought out the company’s common stock, and then removed preferred stock from public trading.

According to investors, AmTrust was subjected to investigations by the Securities and Exchange Commission for several ...