The Insurance Australia Group Ltd (ASX: IAG) share price remains relatively steady so far today amid a company update on legal action.
This morning, the insurance giant provided a short and sharp market update regarding an investor class action.
At the time of writing, IAG shares are exchanging hands at $4.54, down 0.22%.
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IAG shareholders launch class action lawsuit
Investors appear unfazed by the company's latest release to the ASX.
In its statement, IAG advised it has been served with a shareholder representative proceeding over its disclosures regarding COVID-19 business interruption claims.
Los Angeles-based law firm Quinn Emanuel Urquhart and Sullivan took on the case last year which has since moved forward.
The class action was filed in the Supreme Court of Victoria on behalf of investors who acquired IAG shares between 11 March 2020 and 20 November 2020.
As reported by the Australian Financial Review, the legal action relates to the company's disclosure of its financial exposure to the pandemic.
The claim alleges IAG misrepresented shareholders with an outdated policy that eventually led to a $750 million capital raise in November 2021 to cover COVID-19 impacts.
This resulted in IAG losing around $800 million in its market capitalisation following an announcement relating to "policy wording and capital raising".
While the proceeding is gathering pace, IAG said it intends to defend its position.
About the IAG share price
It's been a rollercoaster for IAG shareholders, with the company's share price reaching a 52-week high of $5.51 in mid-2021 before tumbling to as low as $4.02 in June 2022.
Currently, the IAG share price is up almost 7% this year.
Based on today's price, the company has a market capitalisation of around $11.02 billion.
