RADNOR, Pa., April 21 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all securities (including bonds) purchasers of Fairfax Financial Holdings Ltd. ("Fairfax" or the "Company") between March 24, 2004 and March 21, 2006, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice, your rights, or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The complaint charges Fairfax Financial Holdings Ltd., V. Prem Watsa, Trevor Ambridge, M. Jane Williamson, Anthony F. Griffiths, Robert Hartog, Bradley P. Martin, and Banc of America Securities, LLC with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Fairfax, through its subsidiaries, engages in property and casualty insurance and reinsurance conducted on a direct basis principally in Canada, the United States, and the United Kingdom. It also provides claims adjusting, appraisal, and loss management services. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's current reserve accounts were understated; (2) that the Company over-utilized aggressive off-balance sheet funding mechanisms; (3) that the Company improperly accounted finite reinsurance contracts; (4) as a consequence of the foregoing, the Company's reported earnings were materially inflated throughout the Class Period; and (5) that defendants consistently downplayed the seriousness of regulatory inquiries and subpoenas issued against the Company.
On March 22, 2006, Fairfax announced that the SEC issued subpoenas to the Company's independent auditor and a shareholder, in addition to subpoenas issued to the Company and its Chief Executive Officer, in an ongoing probe into certain financial transactions, including nontraditional insurance or reinsurance product transactions. On this news, shares of Fairfax fell $16.97 per share, or 12.96 percent, to close at $113.93 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than June 12, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esquire
Richard A. Maniskas, Esquire
280 King of Prussia Road
Radnor, PA 19087
1-800-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at
