Kingsway sues over American Country reserves

Kingsway Financial Services Inc. has launched a lawsuit against the former directors and auditors of its recent acquisition, American Country Holdings Inc. Kingsway alleges the directors, along with Pricewaterhouse Coopers LLP and Miller, Herbers, Lehman & Associates Inc. understated the reserves of American Country’s insurance subsidiary for the years 1998 through 2001, and associated costs and damages.
Kingsway alleges the reserve deficiencies occurred prior to its acquisition of American Country in spring 2002.
Kingsway notes, however, that it did account for these deficiencies in its 2002 audited financial statements and that it has not experienced any material adverse development from American Country’s reserves this year.