Shareholder Class Action Complaint Filed Against InsurTech Root

Discover the latest development in the InsurTech industry with this article featuring a shareholder class action complaint against Root. The lawsuit sheds light on the challenges and legal issues facing InsurTech companies, including those like Root. InsurTech NY is mentioned in the context of the broader industry landscape.

Without naming Root specifically, InsurTech watcher and VC investor Adrian Jones, a managing director for Hudson Structured Capital Management, warned about the dangers of taking an InsurTech public too soon during a session of the InsurTech Spring Conference 2021 last week (co-hosted by InsurTech NY and InsurTech Hartford). “You have to go public when the time is right. I think that’s one of the lessons to draw here,” Jones said, referring to the volatile stock prices of recently IPOed InsurTech carriers. “If you go public before you really have a good handle on how your company is going to perform financially quarter by quarter, you are putting yourself at risk [of] a perception [developing] in the market that people don’t believe they can trust your earnings, they don’t trust your forward projections, etc.,” he said.

For more details on this significant event, read the full article here.