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News and Information Article
RADNOR, Pa., May 3 // -- The following statement was issued
today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the
United States District Court for the Southern District of New York on
behalf of all securities purchasers of PXRE Group Ltd. (NYSE: PXT) ("PXRE"
or the "Company") between July 28, 2005 and February 16, 2006, inclusive
(the "Class Period").
If you wish to discuss this action or have any questions concerning
this notice, your rights, or interests with respect to these matters,
please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard
A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via
e-mail at info@sbclasslaw.com.
The Complaint charges PXRE, Jeffrey L. Radke, and John M. Modin with
violations of the Securities Exchange Act of 1934. PXRE is a worldwide
provider of catastrophe reinsurance products and services to both primary
insurers and reinsurers. Since 1987, they have specialized in offering
catastrophe and risk excess reinsurance. More specifically, the Complaint
alleges that the Company failed to disclose and misrepresented the
following material adverse facts which were known to defendants or
recklessly disregarded by them: (1) that the Company concealed from
investors the full impact on its business of Hurricanes Katrina, Rita, and
Wilma ("2005 Hurricanes"); (2) that, in fact, the Companys cost of the
2005 Hurricanes had doubled to an estimated $758 million to $788 million;
(3) that the magnitude of the loss would cause the Company to lose key
financial-strength and credit ratings from A.M. Best, an influential
industry-rating agency (4) that the Company concealed the losses in order
to complete a $114 million secondary offering and raise more than $350
million from an offering of perpetual preferred shares; and (5) that as a
consequence of the foregoing, the Companys statements with respect to its
loss estimates for the 2005 Hurricane season lacked in all reasonable
basis.
On February 16, 2006, after the close of the market, PXRE shocked
investors when it announced that it would be increasing its estimates of
the net pre-tax impact of Hurricanes Katrina, Rita and Wilma by an amount
between $281 million to $311 million for the year ended December 31, 2005
compared to the high end of their prior announced estimates. Later that
same day, February 16, 2006, A.M. Best announced that it had downgraded the
financial strength rating of PXRE to B++ (Very Good) from A- (Excellent).
News of this sent shares of PXRE spiraling downward on February 17, 2006.
By the end of the day, shares of PXRE had fallen $7.85 per share, or 65.94
percent, on high trading volume, to close at $4.05 per share.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin
& Barroway is a driving force behind corporate governance reform, and has
recovered billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more information
about Schiffrin & Barroway, or to sign up to participate in this action
online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later
than July 3, 2006, move the Court to serve as lead plaintiff of the class,
if you so choose. A lead plaintiff is a representative party that acts on
behalf of other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class members
claim is typical of the claims of other class members, and that the class
member will adequately represent the class. Under certain circumstances,
one or more class members may together serve as "lead plaintiff." Your
ability to share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. You may retain Schiffrin &
Barroway, or other counsel of your choice, to serve as your counsel in this
action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esquire
Richard A. Maniskas, Esquire
280 King of Prussia Road
Radnor, PA 19087
1-800-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
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