HARTFORD, Conn., May 4, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the securities of PXRE Group Ltd. ("PXRE" or the "Company") (NYSE:PXT) between July 28, 2005 and February 16, 2006, inclusive, (the "Class Period"). Also included are those who purchased in a secondary offering on October 3, 2005.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose the following: (i) that PXRE concealed from investors the full impact on its business of hurricanes Katrina, Rita, and Wilma (the "2005 Hurricanes"); (ii) that, in fact, the Company's cost of the 2005 Hurricanes had doubled to an estimated $758 million to $788 million; (iii) that the magnitude of the loss would cause PXRE to lose key financial-strength and credit ratings from A.M. Best; (iv) that PXRE concealed the losses in order to complete a $114 million secondary offering and raise more than $350 million from an offering of perpetual preferred shares; and (v) that as a consequence of the foregoing, the Company's statements with respect to its loss estimates for the 2005 Hurricane season were lacking in reasonable basis.
On February 16, 2006, PXRE announced that it would be increasing its estimates of the net pre-tax impact of Hurricanes Katrina, Rita and Wilma by an amount between $281 million to $311 million for the year ended December 31, 2005 compared to the high end of their prior announced estimates. On this news, shares of PXRE fell $7.85 to close at $4.05 per share.
If you are a member of the class, you may, no later than July 3, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.