SOURCE: Brower Piven, A Professional Corporation

February 11, 2010 12:54 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $500,000 From Investment in CRM Holdings, Ltd. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the April 6, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - February 11, 2010) -  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 securities of CRM Holdings, Ltd. ("CRM Holdings" or the "Company") (NASDAQ: CRMH) during the period between December 21, 2005 and November 5, 2008, 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 April 6, 2010 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. You may contact Brower Piven (through or 410/415-6616) to answer any questions you may have in that regard. 

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that defendants and their affiliates engaged in a fraudulent scheme and course of business to grow membership in eight self-insured groups (the "Trusts") previously administered by CRM by charging premiums below commercial rates; that the membership growth inflated gross trust revenues while reducing net paid premium income to the level that the assets of the Trusts would become insufficient to cover liabilities such that the Trusts would fall below "fully funded" status; that to cover up the difference between assets and liabilities, defendants and their affiliates disguised the true financial conditions of the Trusts by engaging in certain improprieties designed to result in minimal projected claims liability, including under-reserving individual claims and utilizing improper actuarial/accounting methods; and that defendants and their affiliates provided the New York State Workers' Compensation Board (WCB) with materially false and/or misleading financial and actuarial reports for the Trusts which reflected artificially reduced liabilities, all exposing the Company to hundreds of millions of dollars in liabilities relating to the under-funding of the Trusts. According to the complaint, after the Company received a letter from the WCB indicating its intention to initiate legal proceedings against the Company on behalf of the Trusts related to CRM Holdings' actions while acting as the administrator and broker of record for the Trusts, and, again, after the Company reported its financial results for the 2008 fiscal third quarter and announced that during third quarter the Company had approximately $2.5 million of loss reserve increases that accrued in the first and second quarter of 2008, the value of CRM's stock declined significantly.

If you have suffered a net loss for all transactions in CRM Holdings, Ltd. securities during the Class Period (including shares or possibly calls purchased during, but not sold until after the end of the Class Period or possibly put options sold but not covered until after the end of the Class Period), you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at, by email at, 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 40 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

    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    Email Contact