NEW YORK, May 17, 2006 (PRIMEZONE) -- A class action lawsuit was filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") in the United States District Court for the Southern District of New York, against PXRE Group Ltd. ("PXRE" or the "Company") (NYSE:PXT) and certain of its officers, on behalf of purchasers of the Company's securities during the period from July 28, 2005 to February 16, 2006, both dates inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder.
PXRE, based in Pembroke, Bermuda, is a world-wide provider of catastrophe reinsurance products and services. The complaint alleges the following: (i) that the Company concealed from investors the full impact on its business of hurricanes Katrina, Rita and Wilma; (ii) that, in fact, the Company's cost of the three hurricanes had doubled to an estimated $758 million to $788 million; (iii) that the magnitude of the loss would cause the Company to loose key financial-strength and credit ratings; (iv) that the Company 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 lacked in all reasonable basis.
The complaint further alleges that on February 16, 2006, after the close of the market, PXRE shocked investors when it 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. By the end of the day, PXRE shares fell $7.85 per share, or over 65%, on high trading volume, to close at $4.05 per share.
If you purchased the securities of PXRE during the Class Period, you have until July 3, 2006 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. 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.