LOS ANGELES, May 5, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Fairfax Financial Holdings Limited ("Fairfax" or the "Company") (NYSE:FFH) between March 24, 2004 and March 22, 2006, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Fairfax and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Fairfax's business and operations caused the Company's stock price to become artificially inflated, inflicting damages on investors. Fairfax engages in property and casualty insurance and reinsurance, conducted on a direct basis principally in Canada, the United States and the United Kingdom. The Complaint alleges that defendants' Class Period representations regarding Fairfax were materially false and misleading because (i) Defendants had manipulated Fairfax's accounting for purchases and sales of certain "finite risk" reinsurance to and from the Company's captive subsidiaries, and/or allowed such manipulation to occur; (ii) Defendants allowed and/or authorized the Company to enter into bogus reinsurance contracts with Odyssey Reinsurance Holdings Ltd. ("Odyssey Re") and Northbridge Financial Corp. ("Northbridge"); (iii) Defendants failed to maintain adequate operational or financial controls within Fairfax such that the officers and directors of the Company could assure that its reported financial statements were true, accurate or reliable; (iv) the Company's financial statements and reports were not prepared in accordance with Generally Accepted Accounting Principles and SEC rules; and (v) as a result of the foregoing, defendants lacked any reasonable basis to claim that Fairfax was operating according to guidance sponsored and/or endorsed by defendants, or that the Company could achieve such guidance.
At the end of the Class Period, investors finally learned that the Company had engaged in inappropriate "finite risk" insurance transactions with its captive subsidiaries, including Odyssey Re and Northbridge. Defendants then revealed that the Company's CEO and others related to the Company had received subpoenas from U.S. market regulators concerning Fairfax's finite risk insurance business.
These sudden and shocking disclosures had an immediate impact on the price of the Company's stock, causing Fairfax shares to decline almost 30% in the days following these belated disclosures.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than June 12, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.