A securities class action has been filed against Everest Group, Ltd. (EG) on behalf of all persons or entities that purchased or otherwise acquired Everest common stock between February 8, 2024 through October 27, 2025. This case has been filed in the USDC – SDNY.
Everest is a Bermuda-based commercial property and casualty insurer and reinsurer. Beginning in 2020, Everest significantly expanded its U.S. casualty insurance business, which was exposed to social inflation, meaning increases in claim costs beyond ordinary inflation caused by larger verdicts and settlements, litigation funding, and rising legal expenses. During the Class Period, Defendants represented that Everest had strengthened its underwriting, adequately priced its policies, reduced its exposure to risks vulnerable to social inflation, and maintained sufficient reserves.
The Action alleges that these representations were materially false and misleading because throughout the Class Period, Defendants knew or recklessly disregarded, but failed to disclose, that: (i) Everest remained materially exposed to and concentrated in casualty risks subject to escalating claim costs, including business Defendants claimed Everest had reduced or exited; (ii) Everest had inadequately priced portions of that business; (iii) Everest’s reserves were insufficient, causing it to understate its liabilities and expenses and materially overstate its earnings; and (iv) addressing these problems would require substantial reserve charges, protection against further adverse development, and reductions in Everest’s casualty business, thereby sacrificing recurring premium revenue.
The truth began to emerge on October 30, 2024, when Everest released its third quarter results and disclosed that loss activity in its U.S. casualty business had “definitely spiked.” Everest’s stock price fell 6.4% the next day, to close at $355.61 per share on October 31, 2024. In the following months, Everest’s stock price declined further after the unexpected departures of two senior executives. On January 27, 2025, Everest announced $1.7 billion in reserve strengthening, including approximately $1.3 billion related to U.S. casualty losses. Its new Chief Executive Officer (“CEO”) acknowledged that Everest’s “underwriting choices contributed significantly” to the losses. Everest’s stock price dropped an additional 5.8% over the next two trading days, to close at $351.51 per share on January 29, 2025.
The truth emerged further on October 27, 2025, when Everest disclosed $478 million in unfavorable prior-year reserve development, driven principally by U.S. casualty losses. Everest also entered into an agreement providing $1.2 billion in protection against further adverse development and announced that it would transfer renewal rights for certain businesses to AIG. Following these disclosures, Everest’s stock price fell $39.07 per share, or 11.4%, to close at $304.91 per share on October 28, 2025.