LOS ANGELES, June 19, 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 PXRE Group Ltd. ("PXRE" or the "Company") (NYSE:PXT) between July 28, 2005 and February 16, 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 PXRE 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 PXRE's business and financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. PXRE is a world-wide provider of catastrophe reinsurance products and services to primary insurers and reinsurers. The Complaint alleges that during the Class Period defendants failed to disclose to the market materially adverse facts, including that: (i) the Company concealed from investors the full impact on its business of hurricanes Katrina, Rita, and Wilma (the "2005 Hurricanes"); (ii) and, in fact, the Company's cost of the 2005 Hurricanes had doubled to an estimated $758 million to $788 million; (iii) the magnitude of the loss would cause the Company to lose key financial-strength and credit ratings from A.M. Best, an influential industry-rating agency; (iv) 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) as a consequence of the foregoing, the Company's statements with respect to its loss estimates for the 2005 Hurricane season were lacking in any reasonable basis.
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 compared to the high end of their prior announced estimates. Later that same day, A.M. Best announced that it had downgraded the financial strength rating of PXRE to B++ (Very Good) from A- (Excellent).
This news sent shares of PXRE sharply downward on February 17, 2006. By the end of the day, shares of PXRE had fallen $7.85 per share -- a more than 65% drop -- on heavy trading volume, to close on February 17, 2006 at $4.05 per share.
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 July 3, 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 Michael Goldberg, 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