On August 21, 2023, American Coastal issued a press release stating that it “has identified certain errors related to the reporting of discontinued operations for the previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2023, which errors had the effect of understating the net income for the three months ended March 31, 2023 by approximately $6.4 million. These errors were discovered in the course of preparing [American Coastal’s] interim financial statements for the fiscal quarter ended June 30, 2023, and included errors in [American Coastal’s] accounting for income tax expense primarily relating to the deconsolidation of [American Coastal’s] former subsidiary, United Property & Casualty Insurance Company.” Accordingly, American Coastal determined that the statements at issue should no longer be relied upon.

On this news, American Coastal’s stock price fell $0.38 per share, or 5%, to close at $7.22 per share on August 22, 2023.