SOURCE: Shareholders Foundation

Shareholders Foundation

March 10, 2010 09:32 ET

Shareholders Foundation Announces Investor Lawsuit Against Zenith National Insurance Corp. Board

SAN DIEGO, CA--(Marketwire - March 10, 2010) - The Shareholders Foundation, Inc. announces that a lawsuit has been filed in California State Court on behalf of current investors in Zenith National Insurance Corp., who purchased their ZNT shares before February 18, 2010, alleging that the defendants' attempted to sell Zenith National Insurance to Fairfax Holdings Limited and Fairfax Investments II USA Corp., by means of an unfair process and for an unfair price.

On Feb 18, 2010, Zenith National Insurance Corp. and Fairfax Financial Holdings Limited announced that Fairfax Financial Holdings Limited and Zenith National Insurance Corp. have entered into a $1.4 billion merger agreement pursuant to which Fairfax Financial Holdings will acquire for $38.00 per share in cash all of the outstanding shares of Zenith National Insurance Corp common stock (ZNT), which it does not currently own.

But shares of Zenith National Insurance Corp. (ZNT) traded over $38 per share after the announcement and reached $41.08 per share in September 2008, $43.93 per share in Jan. 2008, and over $50 per share in 2007. Also, at least one analyst has set a price target for Zenith stock at $40.00 per share.

According to the complaint the plaintiff alleges that the transaction substantially undervalues Zenith National Insurance shares and that Zenith National Insurance is selling itself too cheaply, through an unfair process, to Fairfax Financial Holdings.

Those who currently are investors in shares of Zenith National Insurance Corp. and purchased their shares before Feb. 18, 2010, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.

The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

Contact Information

  • CONTACT:
    Shareholders Foundation, Inc.
    Trevor Allen
    +1 (858) 779-1554
    3111 Camino Del Rio North
    Suite 423
    San Diego, CA 92108