SOURCE: Brower Piven, A Professional Corporation

July 28, 2011 18:23 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in Fairfax Financial Holdings Ltd. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the September 23, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jul 28, 2011) - 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 Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact