Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in Fairfax Financial Holdings Ltd. to...
July 28 2011 - 6:23PM
Marketwired
Brower Piven, A Professional Corporation announces that a class
action lawsuit has been commenced in the United States District
Court for the Southern District of New York on behalf of purchasers
of the common stock of Fairfax Financial Holdings Ltd. ("Fairfax"
or the "Company") (NYSE: FFH) during the period between May 21,
2003 and March 22, 2006, inclusive (the "Class Period").
No class has yet been certified in the above action. Members of
the Class will be represented by the lead plaintiff and counsel
chosen by the lead plaintiff. If you wish to choose counsel to
represent you and the Class, you must apply to be appointed lead
plaintiff no later than September 23, 2011 and be selected by the
Court. The lead plaintiff will direct the litigation and
participate in important decisions including whether to accept a
settlement and how much of a settlement to accept for the Class in
the action. The lead plaintiff will be selected from among
applicants claiming the largest loss from investment in the Company
during the Class Period. You are not required to have sold your
shares to seek damages or to serve as a Lead Plaintiff.
The complaint accuses the defendants of violations of the
Securities Exchange Act of 1934 and the Securities Act of 1933 by
virtue of the Company's concealing during the Class Period its lack
of liquidity over the course of several years by fraudulently
accounting for reinsurance contracts which were, in essence, loans
by, among other things, failing to employ adequate risk transfer
tests to determine if reinsurance contracts qualified for
"reinsurance" rather than "deposit" accounting; maintaining
ineffective controls while assuring investors that the Company's
controls were effective; using privately held foreign assets
domiciled in jurisdictions with lax oversight to permit the Company
to manipulate its investment income; failing to properly account
for losses in companies that should have been consolidated with
Fairfax; improperly accounting for intercompany transactions; and
using "investments" to funnel money to cash strapped subsidiaries.
According to the complaint, after, on March 22, 2006, Fairfax
revealed that the Securities and Exchange Commission ("SEC") had
subpoenaed records of all of Fairfax's finite reinsurance contracts
in the previous year and that the SEC had subpoenaed V. Prem Watsa,
Fairfax's Chairman and Chief Executive Officer, in connection with
his denials of Fairfax's use of finite reinsurance contracts, and
Fairfax's announcement also disclosed that the Company's auditor,
PricewaterhouseCoopers LLP Chartered Accountants, Toronto, Ontario
Canada, received a subpoena from the SEC, the value of Fairfax
shares declined significantly.
If you have suffered a net loss for all transactions in Fairfax
Financial Holdings Ltd. common stock during the Class Period, you
may obtain additional information about this lawsuit and your
ability to become a lead plaintiff by contacting Brower Piven at
www.browerpiven.com, by email at hoffman@browerpiven.com, by
calling 410/415-6616, or at Brower Piven, A Professional
Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153.
Attorneys at Brower Piven have combined experience litigating
securities and class action cases of over 60 years. If you choose
to retain counsel, you may retain Brower Piven without financial
obligation or cost to you, or you may retain other counsel of your
choice. You need take no action at this time to be a member of the
class.
CONTACT: Charles J. Piven Brower Piven, A Professional
Corporation Stevenson, Maryland 410/415-6616 Email Contact
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