NEW YORK, May 16, 2006 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors of Fairfax Financial Holdings Ltd. ("Fairfax" or the "Company") (NYSE:FFH) that June 12, 2006 is the deadline to ask the Court to appoint you lead plaintiff for the Class. Pomerantz filed a class action lawsuit in the United States District Court for the Southern District of New York, against the Company and certain of its officers, on behalf of purchasers of the common stock of the Company during the period from March 24, 2004 to March 21, 2006, both dates inclusive, (the "Class Period"). The complaint alleges violations of Sections 11, 12(a) (2) and 15 of the Securities Act of 1933, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
Fairfax, headquartered in Toronto, Canada, engages in property and casualty insurance products principally in Canada, the United States, and the United Kingdom. It also provides claims adjusting, appraisal, and loss management services. The Complaint alleges the following: (i) that the Company's current reserve accounts were understated; (ii) that the Company over utilized aggressive off-balance sheet funding mechanisms; (iii) that the Company improperly accounted finite reinsurance contracts; (iv) as a consequence of the above, the Company's reported earnings were materially inflated throughout the Class Period; and (v) that defendants consistently downplayed the seriousness of regulatory inquiries and subpoenas issued against the Company.
On March 22, 2006, Fairfax announced that U.S. securities regulators issued subpoenas to third parties (including the Company's independent auditor and a shareholder) 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 shares.
Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.