NEW YORK, Oct. 5, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of all purchasers of Converium Holding AG securities ("Converium") (NYSE:CHR) during the period between December 11, 2001 through July 20, 2004 (the "Class Period").
The complaint charges Converium, Dirk Lohmann, and Martin Kauer with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. 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 Converium maintained inadequate loss reserves in its Converium North America subsidiary; (2) that the Company, contrary to representations, did not establish adequate loss reserves to cover claims by Converium North America policy holders; (3) that reserve increases announced by the Company during the Class Period were materially insufficient; and (4) as a consequence of the understatement of loss reserves, Converium's earnings and assets were materially overstated at all relevant times.
On July 20, 2004, Converium announced that second quarter results would be impacted by a reserve strengthening for US casualty business and subsequent asset impairments on the balance sheet of Converium Reinsurance. News of this shocked the market. Shares of Converium fell $11.12 per share, or 44.44 percent, on July 20, 2004, to close at $13.90 per share. On August 31, 2004, Converium announced that the Company had completed external actuarial review of Converium's reserves. On September 2, 2004, Converium announced that following the announcement of the external reserve review's outcome and resulting capital measures, Standard & Poor's and A.M. Best have lowered their ratings on Converium and its subsidiaries. On this news, shares of Converium fell an additional $1.04 per share, or 10.51 percent, to close at $8.86 per share.
If you purchased or acquired the shares of Converium, on any world exchange, between December 11, 2001 through July 20, 2004, and sustained damages, you may, no later than December 3, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action; regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.