Fairfax Financial Holdings Limited (USA) hit by Investor Lawsuit alleging Securities Laws Violations

July 27, 2011 - PRLog -- An investor in shares of Fairfax Financial Holdings Limited (USA) (PINK: FRFHF) filed a lawsuit in the United States District Court for the Southern District of New York against Fairfax Financial Holdings Limited over alleged violations of Federal Securities Laws.

If you purchased shares of Fairfax Financial Holdings Limited (USA) (PINK: FRFHF) during the period between May 21, 2003 and March 22, 2006, you have certain options and there are strict and short deadlines running. Deadline: September 20, 2011. FRFHF stockholders should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

According to the complaint the plaintiff alleges on behalf of investors who purchased Fairfax Financial Holdings Limited (other otc-FRFHF) between May 21, 20032003 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 (USA) (Public, PINK: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.

Those who purchased shares of Fairfax Financial Holdings Limited (USA) (Public, PINK:FRFHF) during the period between May 21, 2003 and March 22, 2006, have certain options and there are strict and short deadlines running. Deadline: September 20, 2011. FRFHF stockholders should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help 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.