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Fairfax Financial Holdings Limited (OTC: FRFHF) Investor Securities Class Action Lawsuit 07/25/2011

  • If you purchased shares of Fairfax Financial Holdings Limited (OTC: FRFHF), you might have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Case Dismissed
Company
Fairfax Financial Holdings Limited
Security
OTC: FRFHF

Case Name
Fairfax Financial Holdings Limited Shareholder Class Action Lawsuit 07/25/2011
Type of Lawsuit
Shareholder Class Action
Class Period Begin
Class Period End
Deadline To File for Lead
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Summary

October 12, 2012 - The U.S. Court of Appeals for the Second Circuit granted the stipulation withdrawing the appeal.
September 19, 2012 - The lead plaintiffs filed a notice of appeal.

August 13, 2012 - The court granted defendants' motions to dismiss.

April 11, 2012 - Defendants filed motions to dismiss.

October 12, 2011 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

September 23, 2011 - Lead plaintiff motion was filed.

July 25, 2011 - An investor in shares of Fairfax Financial Holdings Limited (OTC: FRFHF) filed a lawsuit in the U.S. District Court for the Southern District of New York against Fairfax Financial Holdings Limited over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of investors who purchased Fairfax Financial Holdings Limited (OTC: FRFHF) between May 21, 2003 and March 22, 2006 that Fairfax Financial Holdings Limited and certain of its officers and directors violated the the Securities Exchange Act of 1934 issuing materially false and misleading statements regarding its business practices and financial results.

The plaintiff alleges that on March 22, 2006, Fairfax Financial Holdings Limited disclosed that the U.S. Securities and Exchange Commission ( SEC ) had subpoenaed records of all of Fairfax Financial Holdings Limited 's finite reinsurance contracts in the previous year and that the SEC had subpoenaed V. Prem Watsa, Fairfax Financial Holdings' Chairman and Chief Executive Officer, in connection with his denials of Fairfax Financial Holdings' use of finite reinsurance contracts. Fairfax's March 2006 announcement also disclosed that its auditor, PricewaterhouseCoopers LLP Chartered Accountants, Toronto, Ontario Canada, received a subpoena from the SEC. The price of Fairfax Financial Holdings Limited stock fell $19.97 per share, or 13%, to close at $113.93 per share, representing a decline in market capitalization of approximately $300 million.

Then, on July 29, 2006, Fairfax Financial Holdings Limited announced that it would have to restate its financials going back to 2001.

Fairfax Financial Holdings Limited (OTC: FRFHF) annual Total Revenue fell from $7.51billion for 2007, respectively $7.82billion for 2008 to $6.16billion in 2010. Its Net Income over the same time period fell from $1,086.20million for 2007, respectively $1,471.30million for 2008 to $512.60million for 2010. Its first quarter Revenue fell from $1.98billion a year earlier to $1.56billion for the first quarter in 2011 and its first quarter Net Income of $413.40million last year dropped into a first quarter Loss of $240.60million.