Category: Regulations & Security

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Business Lifestyle Regulations & Security Special/Sponsored Content

AM Best downgrades Credit Ratings of members of Columbian Financial Group; revises under review status to negative

OLDWICK, N.J. — (BUSINESS WIRE) — #insurance — AM Best has downgraded the Financial Strength Rating to B- (Fair) from B (Fair) and the Long-Term Issuer Credit Ratings to “bb-” (Fair) from “bb+” (Fair) of Columbian Mutual Life Insurance Company (Columbian) (Binghamton, NY) and Columbian Life Insurance Company (Chicago, IL), collectively referred to as Columbian Financial Group (CFG). Concurrently, AM Best has maintained the under review status for these Credit Ratings (ratings) and revised the implications status to negative from developing.

The ratings reflect CFG’s balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

 

The rating downgrades reflect a decline in CFG’s overall balance sheet strength to an assessed level of weak from an adequate assessment, relating to a significant decline in the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), in the fourth quarter of 2022 well below targeted levels, driven by reserve increases from an unclaimed property review. The company also incurred operating losses primarily related to continued adverse mortality experience from the effects of the COVID-19 pandemic on the senior market, and declining net premium written.

 

The ratings were put under review shortly after CFG’s announcement on June 29, 2021, that its board of directors had approved a strategic transaction with Constellation Insurance Holdings, Inc. (Constellation) that includes the sponsored demutualization of Columbian to a stock company with the issuance of all newly issued stock to Constellation. Constellation is an insurance holding company backed by two large Canadian institutional investors primarily engaged in the management of pension plans, Caisse de Dépôt et Placement du Québec and Ontario Teachers’ Pension Plan Board. The transaction would provide for Constellation to invest up to $100 million to fund cash payments to eligible policyholders and significantly strengthen Columbian’s capitalization. The acquisition of Columbian by Constellation would provide Columbian needed capital support from a substantially larger organization while maintaining its brand, management team and headquarters. Despite an expected positive impact on capital from the planned transaction with Constellation, the anticipated closing date has been pushed back several times due to delays in obtaining regulatory approvals. The negative implications reflect AM Best’s concerns around the potential for continued losses and the level of capital going forward, especially should the transaction not occur. The ratings will remain under review with negative implications until the transaction approvals are finalized, the transaction closes, and AM Best evaluates the overall impact.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Stratos Laskarides
Senior Financial Analyst
+1 908 439 2200, ext. 5613
stratos.laskarides@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Edward Kohlberg
Director
+1 908 439 2200, ext. 5664
edward.kohlberg@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Categories
Business Lifestyle Regulations & Security Science Technology

Engineering Solutions and Meadowgate Technologies combine to create hybrid IT leader serving national security sector

Maryland companies join forces to deliver full-service hybrid technology capabilities

 

ANNAPOLIS JUNCTION, Md. — (BUSINESS WIRE) — Maryland companies Engineering Solutions LLC (ESi) and Meadowgate Technologies LLC today announced they are combining to create a market leader in hybrid technology solutions and professional services for the national security community.

 

The new company will be led by Meadowgate CEO Tom Lash, a former national security leader at AWS’ Federal Division, who joined Meadowgate earlier this year. He is spearheading a strategy to build a business aligned with growing customer demand for the unique operational agility and security that advanced hybrid solutions can deliver.

“This combination is a pivotal move in our hybrid technology strategy,” said Lash. “ESi’s technical expertise, specialist professional services, and profound understanding of the mission objectives of their customers blend exceptionally well with the product knowledge and systems integration expertise of the Meadowgate team. We are particularly excited at the potential this creates for collaboration on new hybrid product and service innovations through our Integration Lab, working alongside our customers and partners in industry. We can’t wait to get started.”

 

By harnessing complementary skills, experience and capabilities, ESi and Meadowgate are creating a full-service hybrid solutions client experience ranging from technology evaluation to systems integration and through-life services support. The new company will offer technology consulting, product procurement and integration, solution development, systems engineering, enterprise resiliency and hybrid workload development, migration, and management.

  • ESi, established in 1998 and based in Hanover, Maryland, has grown its professional services team to over 100 cleared, highly educated and certified specialists skilled in software and system engineering, information technology management, enterprise resiliency, and SIGINT operations and analysis for the intelligence community. The company is dedicated to supporting the national security mission, with a longstanding reputation for delivering technical and execution excellence for its valued customers. Building on ESi’s success as a prime contractor, the firm brings a significant pipeline of new business to the combined organization to drive future growth.
  • Meadowgate is an award-winning business that’s been delivering trusted computing products and services to the federal government since 2006. It has a successful track record of enabling complex federal missions by providing high-performance computing solutions. The company’s growth strategy centers on aligning offerings and talent with the national security community’s growing demand for scalable systems architectures and capabilities that enable seamless movement of data and workloads within hybrid environments. Meadowgate’s Integration Lab will be the R&D hub for the combined company, where the teams come together to apply their collective mission and technical understanding to design and develop new hybrid solutions that improve mission outcomes.

 

Ray Gomes, founder and CEO of ESi, who has announced his intention to retire, will remain with the combined business as a strategic adviser. ESi’s executive team, including Chief Operations Officer Amy Steinberg, Vice President of Programs Eddie Harless and Executive Vice President of Corporate Services David Thompson, will join the leadership team of the combined company.

 

“I am delighted that the team at ESi will be a cornerstone of this exciting growth strategy,” said Gomes.

 

“As I step aside as ESi CEO, it has been my priority to ensure that the company has the best possible opportunity to build on its success for the long term within an employee-focused culture. Coming together with Meadowgate to create a business at the nexus of technology and the mission opens new paths to growth and strengthens our value to customers, presenting more opportunities for the team to shine. I look forward to seeing the company thrive at the forefront of building the hybrid solutions of the future.”

 

ESi and Meadowgate will continue to be customer facing under their respective brand names. At the same time, the combined company leadership, drawn from the existing ESi and Meadowgate executive teams, will be working together to begin the formal integration process and determine the future brand for the new company.

 

KippsDeSanto & Co. acted as the exclusive financial adviser to ESi on this combination.

 

About Engineering Solutions

Engineering Solutions LLC (ESi) supports customers that safeguard our country. ESi is dedicated to serving America’s national security mission by providing technical and execution excellence to intelligence community customers in the areas of software and systems engineering, IT management, enterprise resiliency, and SIGINT operations and analysis. Achieving success for critical missions since 1998, ESi is based in Hanover, Maryland. www.enginsol.com

 

About Meadowgate Technologies

Meadowgate Technologies LLC delivers advanced, trusted IT solutions and products to national security customers and partners. The company specializes in systems engineering, consulting and product procurement to meet the unique needs of each federal agency or industry customer. Established in 2006, Meadowgate is based in Annapolis Junction, Maryland, with offices in Trenton, New Jersey. www.meadowgate.us

Contacts

Kristina Messner

kristina@messnermediagroup.com
703-716-3181

Categories
Business Regulations & Security Special/Sponsored Content

AM Best affirms credit ratings of SiriusPoint Ltd. and its subsidiaries

LONDON — (BUSINESS WIRE) — #insurance — AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of the rated operating subsidiaries of SiriusPoint Ltd. (SiriusPoint) (Bermuda) [NYSE: SPNT]. Additionally, AM Best has affirmed the Long-Term ICR of “bbb-” (Good) of SiriusPoint, which is a non-operating holding company.

 

Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating of “bbb-” (Good) on USD 115 million, 7% senior unsecured notes, due 2025, of SiriusPoint. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings).

 

The ratings reflect SiriusPoint’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of the group’s operating subsidiaries factor in their strategic importance to SiriusPoint.

 

SiriusPoint’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2022, as measured by Best’s Capital Adequacy Ratio. The assessment also considers the significant de-risking of SiriusPoint’s asset base in 2022, owing to the redemption of USD 0.6 billion from related party investment funds and reinvestment of the proceeds into high quality fixed income securities. As a result, cash and fixed income investments comprised 92% of SiriusPoint’s investment portfolio at year-end 2022, up from 78% at year-end 2021. A partially offsetting rating factor is the group’s somewhat limited capital fungibility due to a significant portion of consolidated available capital being held as a safety reserve in the group’s Swedish subsidiary.

 

SiriusPoint is expected to report adequate operating performance over the underwriting cycle. However, recent technical performance has been weak, demonstrated by combined ratios of 120% and 107% (as calculated by AM Best) in 2021 and 2022, respectively. Underwriting profitability is expected to improve and be more stable as SiriusPoint’s management continues to rebalance the group’s business mix away from catastrophe-exposed property business toward less volatile accident and health and specialty lines.

 

SiriusPoint’s neutral business profile assessment reflects its market position as a midtier global (re)insurer, which operates from platforms in Europe, the United States, Bermuda and at Lloyd’s. The group has a good level of diversification by line of business, which is expected to improve further as it executes its business plan.

 

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed, with stable outlooks for the following subsidiaries of SiriusPoint Ltd.:

  • SiriusPoint America Insurance Company
  • SiriusPoint Bermuda Insurance Company Ltd.
  • SiriusPoint International Insurance Corporation (publ)
  • SiriusPoint Specialty Insurance Corporation

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Ben Diaz-Clegg
Senior Financial Analyst
+44 20 7397 0293
ben.diaz-clegg@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Ghislain Le Cam, CFA, FRM
Senior Director, Analytics
+44 20 7397 0268
ghislain.lecam@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Categories
Culture Government Programs & Events Regulations & Security

Cintas’ Fire Protection Division celebrates 20 years of impact

In two decades, Fire Protection has become a national leader in the industry

 

CINCINNATI — (BUSINESS WIRE) — $CTAS — The Cintas Corporation (Nasdaq: CTAS) Fire Protection Division, a national leader in fire sprinkler systems, fire alarms, fire suppression systems, extinguisher inspections, emergency signage and training, is celebrating 20 years of growth, leadership and success.


Cintas launched its Fire business in April 2003 as part of its then-combined First Aid, Safety and Fire Division. It began with a small acquisition in New Jersey and 24 employee-partners and has continued to grow since.

 

Tuesday, Cintas operates the Fire Protection division as a separate business unit1. It employs more than 2,500 employee-partners across the United States operating service locations, processing centers and dedicated support centers.

 

John Amann, President and COO of Cintas Fire Protection since 2016, is proud of the division’s important value proposition.

 

“We help our customers protect their most valuable assets: their people, their property and their businesses,” Amann said. “It’s a responsibility that we never take lightly.”

 

Cintas’ commitment to providing fire protection services has recently extended beyond its customers to support those who help people facing fire and fire-related emergencies.

 

The division’s relationship with the National Fallen Firefighters Foundation (NFFF) includes philanthropic support for the families of those who have lost their lives in service of others during fire emergencies, as well as ongoing business support for its Prevent the Preventable program which provides education and resources to communities to help reduce fire and other hazards and help improve firefighter safety.

 

Cintas is a Chief Sponsor of the NFFF’s 9/11 Memorial Stair Climbs, its annual fundraising campaign that includes hundreds of events around the country that observe and remember the tragic events of Sept. 11, 2001, and raise money to support surviving family members of the fallen fire heroes. In the last two years, Cintas has helped raise more than $150,000 for the foundation.

 

“Our corporate culture is what sets us apart,” Amann said, “We aim to do things the right way, and we try to be a great community member. We service our customers with integrity, attention and care and we help our customers protect what’s most important to them. And we’re helping support the fire industry and its people and families who risk their lives to help others.”

 

As Cintas Fire Protection celebrates two decades of growth, success and leadership in the industry, its first two decades of success have set the stage for its future.

 

“The next 20 years of Cintas Fire Protection look even more exciting,” Amann said, “I can’t wait to see opportunities that will occur along the way.”

 

About Cintas Corporation

Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

 

1 In Cintas Corporation’s financial reporting, Fire Protection is reported under “All Other.”

Contacts

Lizz Summers, Cintas Director of Corporate Affairs, summerse2@cintas.com, 513-972-2859

Categories
Business Culture Economics Education Lifestyle Programs & Events Regulations & Security

Rutgers launches ‘Shares Laboratory’ to study and track equity compensation

26.3 million Americans hold company stock or stock options

 

PISCATAWAY, N.J. — (BUSINESS WIRE) — #ESPP — The Rutgers Institute for the Study of Employee Ownership and Profit Sharing today announced the nation’s first academic research initiative dedicated to equity compensation.

 

The Shares Laboratory will conduct research and policy analysis on company stock, stock options, employee stock purchase plans, and other shares in the workplace.

“A huge number of Americans receive equity compensation,” said Bill Castellano, a Professor in the Rutgers School of Management and Labor Relations and Co-Leader of the Shares Laboratory.

 

“There are many individual studies on its impact, but there’s never been a dedicated research program until now. The Shares Lab gives equity compensation an address – a place in higher education where policy, practice, and impact will be closely monitored.”

 

About a quarter of all private sector employees hold company stock or stock options as part of their compensation package, totaling about 26.3 million Americans. The Shares Lab will advance understanding of shares by:

  • Monitoring the growth of equity compensation and its role in the economy;
  • Analyzing federal policies relating to stock, stock options, and other shares;
  • Conducting scholarly research on equity compensation in all its forms;
  • Proposing path-breaking innovations to extend shares to more employees; and
  • Predicting how changes in equity access will affect different parts of the economy.

 

The Shares Lab will be the Institute’s flagship “big data” program, monitoring a rich array of government databases, public records, and private surveys. Its reports will overnight become the gold standard for basic research on equity compensation. In addition, the Lab has created a model of the U.S. economy that breaks down the labor force by industry, workplace practices, equity access, income, wealth, and personal characteristics. This model will enable researchers to conduct experiments on critical questions.

 

“We know there are gender and racial gaps in equity compensation,” said Douglas Kruse, a Distinguished Professor in the Rutgers School of Management and Labor Relations and Co-Leader of the Shares Laboratory.

 

“By using the model, we hope to learn which policy changes would extend shares to more women and people of color. We also hope to investigate how equity shares affect middle class incomes and wealth, among other key questions.”

 

Kruse is a former Senior Economist at the White House Council of Economic Advisers under President Barack Obama.

 

Bank of America, Computershare, Fidelity Investments, and Paypal are the initial supporters of the Shares Laboratory’s research effort. Google.org provided a major donation to support the collection of 2022 data. The Aspen Institute’s Economic Opportunities Program, the Employee Ownership Foundation, the Global Equity Organization, and the National Center for Employee Ownership will help to disseminate the reports.

 

“The Lab will provide the most objective analysis of equity compensation trends and will identify problems and opportunities in this field,” said Joo Hun Han, a Research Fellow in the Rutgers Institute for the Study of Employee Ownership and Profit Sharing and Co-Leader of the Shares Laboratory.

 

“By engaging with practitioners, we hope to accelerate the impact of our research and propose innovations in equity compensation.”

 

About the School

The Rutgers School of Management and Labor Relations (SMLR) is the world’s leading source of expertise on managing and representing workers, designing effective organizations, and building strong employment relationships.

 

About the Institute

SMLR’s Institute for the Study of Employee Ownership and Profit Sharing conducts empirical research, analyzes policy, and sponsors the leading global fellowship program and academic conferences in the field. Joseph Blasi, the J. Robert Beyster Distinguished Professor, serves as the Institute’s Director.

 

The Institute also manages a program to help college professors teach about these subjects (The Curriculum Library for Employee Ownership) and a technical assistance center (The NJ/NY Center for Employee Ownership). One recent initiative (The Employee Ownership Online Education Program), sponsored by the W.K. Kellogg Foundation, features free online videos to help retiring business owners sell to their employees.

Contacts

Press
Steve Flamisch, Rutgers School of Management and Labor Relations

848.252.9011 (cell), steve.flamisch@smlr.rutgers.edu

Categories
Business Lifestyle Regulations & Security Science Technology

Corvus and Core Specialty to deliver expansion of AI-powered Excess Tech E&O and Cyber product

Core Specialty’s first in the Cyber and Tech E&O market

 

BOSTON — (BUSINESS WIRE) — Corvus Insurance, the leading cyber underwriter, powered by a proprietary AI-driven cyber risk platform, announced today the launch of a new program with Core Specialty to support the expansion of the Excess Tech E&O and Cyber product with additional capacity. This is Core Specialty’s first offering in the Cyber and Tech E&O market and also marks the latest example of Corvus’s commitment to building out its key lines of business.

This program provides up to $5M in coverage for companies with revenues up to $500MM. The program will be written on Core Specialty’s paper and will include Tech E&O coverage, as well as a full suite of Cyber coverages, on an excess basis. The program is supported by a leading panel of reinsurers as well as risk taken through Corvus’s captive, Corvus Reinsurance Company. Corvus’s in-house team will have full management of the policies – from underwriting to claims handling.

 

This latest announcement follows Corvus’s recent launch of Corvus Risk Navigator™, which enables underwriters to provide predictive, data-driven insights, superior risk selection and accelerated decision-making, and IT security recommendations. Brokers who are looking to secure Tech E&O coverage stand to gain tremendous benefits from Corvus’s data-driven method of underwriting. Brokers can leverage Corvus’s policyholder benefits such as risk management tools and personalized vulnerability alerting on both primary and excess Tech E&O placements.

 

“We are thrilled to have the validation of Core Specialty, a well-known leader in specialty insurance. Both Core Specialty and Corvus put underwriting excellence and results first, so we view ourselves as natural partners,” said Corvus CEO Madhu Tadikonda. “Core Specialty’s commitment is a testament to Corvus’s proven track record combining growth with industry-leading loss ratios. The Corvus formula works — arming the strongest underwriters with best-in-class data and technology means accurate risk selection, better broker experience, and superior underwriting outcomes. We have the best team in the industry and are excited to expand our realm of possibilities with broker partners, thanks to this partnership, including the roll-out of excess capacity.”

 

“We chose Corvus for our first foray into Cyber and Tech E&O because of its unique and modern approach to combining skilled underwriting with data-driven technology,” said Jeff Consolino, President and CEO of Core Specialty. “We are impressed by Corvus’s talented team of cybersecurity underwriters, technology, and data science professionals, and look forward to working together to support a full spectrum of Tech E&O business — starting with this excess coverage. The Tech E&O and Cyber product will complement Core Specialty’s Commercial Errors & Omissions Liability products and services for small and medium sized businesses and professionals where we deliver a wide range of protection to help cover loss and defense costs that come from claims of professional negligence, error, or omission.”

 

About Corvus Insurance

Corvus Insurance is building a safer world through insurance products and digital tools that reduce risk, increase transparency, and improve resilience for policyholders and program partners. Our market-leading specialty insurance products are enabled by advanced data science and include Smart Cyber Insurance® and Smart Tech E+O™. Our digital platforms and tools enable efficient quoting and binding and proactive risk mitigation. Corvus Insurance offers insurance products in the U.S., Middle East, Europe, Canada, and Australia. Current insurance program partners include Crum & Forster, Hudson Insurance Group, certain underwriters at Lloyd’s of London, R&Q Accredited, SiriusPoint, and The Travelers Companies, Inc. Corvus Insurance, Corvus London Markets, and Corvus Germany are the marketing names used to refer to Corvus Insurance Agency, LLC; Corvus Agency Limited; and Corvus Underwriting GmbH. All entities are subsidiaries of Corvus Insurance Holdings, Inc. Corvus Insurance was founded in 2017 and is headquartered in Boston, Massachusetts with offices across the U.S., in the UK, and Germany. For more information, visit corvusinsurance.com.

 

About Core Specialty

Core Specialty offers a diversified range of property and casualty insurance products for small to midsized businesses. From its underwriting offices spanning the U.S., the Company focuses on niche markets, local distribution, and superior underwriting knowledge; offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess & surplus lines insurer, and StarStone National Insurance Company, Lancer Insurance Company, and Lancer Insurance Company of New Jersey, each of which is a U.S. admitted markets insurer. All Core Specialty Insurance entities are rated A- (Excellent); the StarStone companies are Financial Size Category XII and the Lancer entities are Financial Size Category of VII. For further information about Core Specialty, please visit www.corespecialty.com.

Contacts

Inkhouse PR, Jen Weber

corvus@inkhouse.com

Categories
Business Regulations & Security Special/Sponsored Content

KORNIT DEADLINE ALERT: Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed against Kornit Digital Ltd. and encourages investors to contact the firm

NEW YORK — (BUSINESS WIRE) — #A — Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Kornit Digital Ltd. (“Kornit” or the “Company”) (NASDAQ: KRNT) in the United States District Court for the District of New Jersey on behalf of all persons and entities who purchased or otherwise acquired Kornit securities between February 17, 2021 and July 5, 2022, both dates inclusive (the “Class Period”).

 

Investors have until April 17, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Click here to participate in the action.

 

This securities class action is brought on behalf of all persons or entities that purchased or otherwise acquired Kornit ordinary shares between February 17, 2021 and July 5, 2022, inclusive (the “Class Period”). The claims asserted herein are alleged against Kornit and certain of the Company’s current and former senior executives (collectively, “Defendants”), and arise under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5, promulgated thereunder.

 

Kornit designs and manufactures industrial digital printing technologies for the garment, apparel, and textile industries. The Company’s digital inkjet printers enable end-users to print both direct-to-garment (“DTG”) and direct-to-fabric (“DTF”). In DTG printing, designs and images are printed directly onto finished textiles such as clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly onto swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also produces and sells textile inks and other consumables for use in its digital printers. Through customer support contracts, Kornit also provides customer assistance and equipment services for its printers, including technical support, maintenance, and repair.

 

During the Class Period, the Company also began offering software services to its customers, including a suite of end-to-end fulfillment and production solutions, called KornitX, through which the Company provides, among other things, automated production systems and workflow and inventory management.

 

The Company’s largest customer is multinational e-commerce company, Amazon.com, Inc. (“Amazon”). Among the largest of Kornit’s other customers during the Class Period were Delta Apparel, Inc. (“Delta Apparel”), a leading provider of activewear and lifestyle apparel products, and Fanatics, Inc. (“Fanatics”), a global digital sports platform and leading provider of licensed sports merchandise. Kornit generates more than 60% of its revenues from its ten largest customers. Accordingly, it was critically important for Kornit to maintain those major customers as well as continue to grow its customer base in order to achieve the Company’s ambitious goal of “becoming a $1 billion revenue company in 2026.”

 

Throughout the Class Period, Kornit repeatedly touted the purported competitive advantages provided by its technology and assured investors that it faced virtually no meaningful competition in the “direct-to-garment” printing market. The Company also represented that there was strong demand for its digital printing systems, consumable products, such as textile inks, as well as the services Kornit provided customers to maintain and manage its digital printers, and to manage customer workflow. Kornit further assured investors that the purportedly strong demand for the Company’s products and services would enable it to maintain its existing customer base and attract new customers that would limit the risks associated with a substantial portion of its revenues being concentrated among a small number of large customers.

 

These and similar statements made throughout the Class Period were false. In truth, Kornit and its senior executives knew, or at a minimum, recklessly disregarded, that the Company’s digital printing business was plagued by severe quality control problems and customer service deficiencies. Those problems and deficiencies caused Kornit to cede market share to competitors, which, in turn, led to a decrease in the Company’s revenue as customers went elsewhere for their digital printing needs. As a result of these misrepresentations, Kornit ordinary shares traded at artificially inflated prices throughout the Class Period.

 

Investors began to learn the truth on March 28, 2022, when Delta Apparel and Fanatics—two of Kornit’s major customers—announced that for months they had collaborated with one of Kornit’s principal competitors to develop a new digital printing technology that directly competed with products and services Kornit offered. Delta Apparel revealed that it had already installed this new technology in four of its existing digital print facilities and had plans to expand further. The utilization of this new, competing technology by Delta Apparel and Fanatics reflected the widespread dissatisfaction of Kornit’s major customers with the Company’s product quality and customer service, and meant that Kornit would likely lose revenue from two of its most important customers.

 

On May 11, 2022, despite reporting revenues that exceeded expectations, Kornit reported a net loss of $5.2 million for the first quarter of 2022, compared to a profit of $5.1 million in the prior year period. The Company also issued revenue guidance for the second quarter of 2022 that was significantly below analysts’ expectations. Kornit attributed its disappointing guidance to a slowdown in orders from the Company’s customers in the e-commerce segment. In addition, the Company admitted that, for at least the previous two quarters, Kornit knew that one of its largest customers, Delta Apparel, had acquired digital printing systems from a Kornit competitor. As a result of these disclosures, the price of Kornit ordinary shares declined by $18.78 per share, or 33.3%.

 

Then, on July 5, 2022, after the market closed, Kornit disclosed that it would report a sizeable shortfall in revenue for the second quarter of 2022. Specifically, Kornit expected revenue for the second quarter to be in the range of $56.4 million to $59.4 million, far short of the previous revenue guidance of between $85 million and $95 million that the Company provided less than two months earlier, in May 2022. Kornit attributed the substantial revenue miss to “a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations.” As a result of these disclosures, the price of Kornit ordinary shares declined by an additional $8.10 per share, or 25.7%.

 

As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s shares, Plaintiff and other Class members have suffered significant losses and damages.

 

If you purchased or otherwise acquired Kornit shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

 

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts

Bragar Eagel & Squire, P.C.

Brandon Walker, Esq.

Melissa Fortunato, Esq.

(212) 355-4648

investigations@bespc.com
www.bespc.com

Categories
Business Culture Lifestyle Regulations & Security Sports & Gaming

ClashTV announces long-term rights renewal with Isaiah Whitehead Classic Summer Basketball Tournament

First 2023 renewal announcement sets the stage for ClashTV’s return to another amazing NYC Summer Season of Streetball and Culture

 

NEW YORK — (BUSINESS WIRE) — ClashTV, a livestreaming digital platform built to connect fans with the creators, content and culture they are most passionate about, today announced a long-term, multi-year rights renewal with the Isaiah Whitehead Classic (IWC), extending an exclusive interactive media, distribution and content creation partnership that began with a successful 2022 season of streaming.


Founded by Coney Island native Isaiah Whitehead in 2021, IWC hosts the top NYC street ballers from Brooklyn, Uptown, Queens, Staten Island, and New Jersey. A high-school and college standout and former NBA player, Whitehead has brought his resources together to put on the best possible events for his city.

 

This multi-year agreement between ClashTV and IWC will include interactive live streaming, video on demand, and linear distribution of all the event’s full games as well as the creation of short-form and original programming shoulder content. Starting this year, ClashTV will work with IWC and other partners to expand into Web3 loyalty and superfan monetization.

 

“The Isaiah Whitehead Classic quickly rose to become one of our most 2022 streamed event series,” said Ivan Isakov, ClashTV Founder and Chairman. “Extending our partnership in a long-term agreement ensures that ClashTV users get continued exclusive access to amazing basketball content and that the IWC has a path to growth and monetization as part of our Group Flow Flywheel. Big love and respect to Isaiah and the Coney Island family!”

 

Added Whitehead, “I am thrilled to extend and expand the agreement between ClashTV and my IWC tournament. The fan and community feedback to our 2022 ClashTV debut was very positive, and IWC is on the verge of taking over New York City Street Ball. Coney Island is the last stop, so you gotta’ bring your game, not just your name!”

 

This interactive basketball programming builds on ClashTV’s other programming that has included mixed martial arts events and a range of video podcasts featuring personalities such as Add Ventures Music founder and co-founder of Murder Inc. Records Chris “Gotti” Lorenzo.

 

ABOUT CLASHTV

ClashTV is an interactive livestreaming digital platform built to connect fans with the content and culture they are most passionate about. ClashTV allows their audience to view livestreamed and VOD content, vote or clap for what they’re watching, chat on-screen with other fans, purchase merchandise, take part in quizzes, promotional giveaways, and more. From Gen Y and Z-skewing sports content such as Mixed Martial Arts, New York City’s most legendary street basketball leagues and podcasts featuring cultural leaders, ClashTV helps bring the audience closer to the content they love and helps creators better monetize their passions. The app is available on the iOS and Android platforms. For more information, please visit https://www.clashtv.app.

Contacts

MEDIA CONTACT

tony@clsh.tv

Categories
Business Government Lifestyle Local News Regulations & Security

Mercer County clerk announces opportunity for real estate professionals to access property records that include Daniel’s Law protections

TRENTON, N.J. — Real estate professionals may once again have access to all property records, including those subject to Daniel’s Law, if they complete a simple registration with the state, explains Mercer County Clerk Paula Sollami Covello.

 

Real estate professionals, including title searchers, may now register with the N.J. Department of Banking and Insurance, and upon approval, these professionals will have clear access to all records, including those that were redacted, or masked, in accordance with Daniel’s Law.

 

 

Daniel’s Law was implemented in 2020 inorder to protect law enforcement officers, judicial officers, prosecutors, and their families from public record searches. Consequently, County Clerks and other government offices redacted their addresses from public search engines throughout New Jersey.

 

However, the N.J. Legislature later created an exemption for qualified real estate professionals, so that property transactions could continue to move forward.

 

Those business entities are defined as “any person or entity organized under the laws of this State for the primary purpose of determining the existence of any lien, lawsuit, lease, easement, mortgage or other encumbrance or restriction, or ownership interest, on any property and regularly conducts business with any title insurance company or title insurance agent.”

 

Once registered with the Department of Banking and Insurance, title search businesses and real estate businesses may request documents subjected to redaction or nondisclosure under Daniel’s Law.

 

Applications may be submitted electronically by completing the form and following the instructions here:  https://www.state.nj.us/dobi/division_insurance/titlesearch/index.html. There is no cost to complete the registration process.

 

All registrants must maintain their information and immediately inform the Department of Banking and Insurance of any changes to the information in their registration. Any questions regarding the registration process can be directed to: TitleSearch@dobi.nj.gov.

 

For more information on the services offered by the Office of the Mercer County Clerk or questions regarding our public search room, please visit the Mercer County Clerk’s website at https://www.mercercounty.org/government/county-clerk or call the office’s main number at 609-989-6465.

Categories
Art & Life Business Environment Lifestyle Regulations & Security Science Weather Weather & Environment

Best’s Review examines the impact of climate-related risks and more

OLDWICK, N.J. — (BUSINESS WIRE) — The April issue of Best’s Review examines climate-related risks as a key focus for insurers and regulators:

 

 

Also included in the April issue:

 

Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. Access to the complete content of Best’s Review is available here.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2023 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Patricia Vowinkel
Executive Editor, Best’s Review®
+1 908 439 2200, ext. 5540
patricia.vowinkel@ambest.com