NEW YORK-Oct. 12, 2004LAWFUEL – Law, class action, attorney, legal news-The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on October 12, 2004 on behalf of persons who purchased or otherwise acquired the securities of Converium Holding AG (“Converium” or the “Company”) (NYSE:CHR and SWX:CHRN) between December 11, 2001 and August 30, 2004, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss’s website at: http://www.milbergweiss.com
The action is pending in the United States District Court for the Southern District of New York against defendants Converium, Zurich Financial Services Group and certain of Converium’s officers and directors.
The complaint alleges that Converium is a global reinsurer that offers a range of traditional non-life and life reinsurance products, as well as other products to help clients manage capital and risk. The complaint further alleges that, during the Class Period, defendants artificially inflated the price of Converium securities by issuing press releases and other statements touting the strength of the Company’s business. The statements were materially false and misleading because they failed to disclose that: (a) Converium maintained inadequate loss reserves; (b) reserve increases announced by the Company during the Class Period were materially insufficient; and (c) as a consequence of the understatement of loss reserves, Converium’s earnings and assets were materially overstated at all relevant times. Defendants were motivated to engage in this conduct because it enabled the Company to sell $1.9 billion in stock and $200 million in notes at artificially inflated prices.
The truth began to emerge on July 20, 2004. On that date, the Company announced that it had failed to properly and adequately report reserves for losses and asset impairments and that the Company would now be forced to record a charge of over $400 million to bring reserves up to their necessary and proper levels. Immediately following publication of this release the Company’s ADSs fell more than US $10.87 to $14.15 per share in New York, a decline of 43.4% in the single day’s trading session. On August 30, 2004, the Company further announced that it anticipated making third-quarter reserve adjustments of between US $50 million and US $100 million. On this news, Converium ADSs fell $1.30, or 11.6%, from a closing price of $11.20 on August 30, 2004 to a low of $9.90 on August 31, 2004, and closed out the day at $10.10. Shares of the Company declined in tandem on the Swiss exchange.
If you bought the securities of Converium between December 11, 2001 and August 30, 2004, inclusive, and sustained damages, you may, no later than December 3, 2004, request that the Court appoint you as lead plaintiff. 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 member’s 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 Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman
Peter E. Seidman
Andrei V. Rado
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: (800) 320-5081