| Company: | Fairfax Financial Holdings, Ltd. |
| Ticker Symbol: | NYSE: FFH |
| Class Period: | March 24, 2004 to March 21, 2006 |
| Date Filed: | Apr-11-06 |
| Lead Plaintiff Deadline: | Jun-09-06 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit has been filed in the United States District Court, Southern District of New York, on behalf of all persons who purchased the debt securities (defined below) of Fairfax Financial Holdings, Ltd. ("Fairfax" or the "Company") (NYSE: FFH - News) or (TSX: FFH.SV - News) between March 24, 2004 and March 21, 2006, inclusive (the "Class Period"), against defendants Fairfax and V. Prem Watsa, the Company's Chairman and CEO, alleging violations under the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. sections 78j(b) and 78t(a) and Rule 10b-5, promulgated thereunder, 17 C.F.R. sections 240.10b-5 (the "Class").
The Complaint also alleges claims on behalf of a sub-class of Class members who also suffered damages upon purchasing the 7.75% Notes pursuant to or traceable to the Company's August 24, 2004 prospectus ("Prospectus") filed by Fairfax with the SEC on August 25, 2004 to effectuate a $95 million aggregate principal amount debt flotation (the "Sub-Class").
The Complaint alleges that statements in the Prospectus omitted material information including, inter alia, (1) failure to detail the Company's increasing liquidity problems; (2) failure to detail second quarter 2004 transactions between Odyssey and Fairfax and to explain that the arrangements were structured to avoid a liquidity squeeze at Fairfax that would have occurred during the quarter; (3) failure to detail Fairfax's exposure stemming from the need to collateralize run-off business; (4) failure to detail the Company's reserves and whether they were adequate to address the Company's growing run-off operations; (5) failure to detail the Company's growing exposure to finite reinsurance agreements within the overall organization; and (6) failure to detail Fairfax's highly leveraged balance sheet and further omissions concerning the Company's equity position. The claims brought with respect to the Prospectus seek to pursue remedies under the Securities Act of 1933 (the "Securities Act") 15 U.S.C. sections 77k and 77l.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint also alleges claims on behalf of a sub-class of Class members who also suffered damages upon purchasing the 7.75% Notes pursuant to or traceable to the Company's August 24, 2004 prospectus ("Prospectus") filed by Fairfax with the SEC on August 25, 2004 to effectuate a $95 million aggregate principal amount debt flotation (the "Sub-Class").
The Complaint alleges that statements in the Prospectus omitted material information including, inter alia, (1) failure to detail the Company's increasing liquidity problems; (2) failure to detail second quarter 2004 transactions between Odyssey and Fairfax and to explain that the arrangements were structured to avoid a liquidity squeeze at Fairfax that would have occurred during the quarter; (3) failure to detail Fairfax's exposure stemming from the need to collateralize run-off business; (4) failure to detail the Company's reserves and whether they were adequate to address the Company's growing run-off operations; (5) failure to detail the Company's growing exposure to finite reinsurance agreements within the overall organization; and (6) failure to detail Fairfax's highly leveraged balance sheet and further omissions concerning the Company's equity position. The claims brought with respect to the Prospectus seek to pursue remedies under the Securities Act of 1933 (the "Securities Act") 15 U.S.C. sections 77k and 77l.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
