Securities Fraud Case Against RenaissanceRe Holdings Ltd. is Filed By Scott + Scott, LLC
Monday August 15, 5:24 pm ET
SEC Probe into Restatement May Result in Charges Brought Against CEO
COLCHESTER, Conn., Aug. 15 /PRNewswire/ — Scott + Scott, LLC (http://www.scott-scott.com) represents client shareholders in a securities class action filed in the United States District Court for the Southern District of New York against RenaissanceRe Holdings Ltd. (“RNR”) (NYSE: RNR; “RenaissanceRe” or the “Company”). Purchasers of securities in RNR during the Class Period from January 24, 2002 through July 25, 2005 inclusive (the “Class Period”) are members of the purported class. RNR is a global provider in reinsurance and insurance and maintains its principal place of business in Bermuda. Scott + Scott has had success in litigating securities cases involving Bermudian reinsurance companies.
If you purchased RNR securities during the Class Period and wish to discuss this action or have questions concerning this notice or your rights as a class member, you may contact this firm for more information. Scott + Scott will provide you with case materials, answer all questions regarding your participation and rights and assist you with other services that the firm provides. There is no cost or fee to you. Contact Scott + Scott partner Neil Rothstein at [email protected] (800/332-2259, ext. 22 or cell 619/251-0887) or attorney Amy K. Saba at [email protected] (800/332-2259, ext. 26).
The complaint filed on August 5th by Scott + Scott, LLC alleges that during the Class Period, RenaissanceRe and certain individual defendants violated the Securities Exchange Act of 1934. Specifically, the complaint alleges that various Company financial statements filed with the U.S. Securities and Exchange Commission (“SEC”) were fraudulent as a result of: (i) problematic finite reinsurance recoverables, which led to a misstatement of net income by as much as 12% in a given year; (ii) improper accounting for the timing of recognition of premiums on multi-year ceded reinsurance contracts during the first three quarters of 2004; and (iii) noncompliance with rules outlined in the Generally Accepted Accounting Principals (“GAAP”).
On July 25, 2005, RenaissanceRe reported that the SEC served the Company’s Chief Executive Officer, James N. Stanard, with a Wells Notice, indicating that SEC officials plan to recommend that charges be brought against Mr. Stanard for violations of federal securities laws. In its statement, RenaissanceRe also said the SEC separately issued a Wells Notice to Michael W. Cash, formerly Senior Vice President of Specialty Reinsurance. Mr. Cash resigned last month, after refusing to comply with a SEC subpoena requesting his testimony in an investigation into the three-year restatement of the Company’s earnings announced by RenaissanceRe in February.
The SEC has been conducting an ongoing investigation into the restatement of the Company’s 2001, 2002 and 2003 financial statements. The effect of the restatement was to lift the Company’s 2001 and 2003 net income by $20.6 million and $1.3 million, respectively, and lower its 2002 net income by $21.9 million, the Company reported and the complaint alleges. RenaissanceRe, like many insurance industry companies, has been subpoenaed in recent months by state and federal regulators investigating whether companies have used finite risk products to manipulate their results.
Scott + Scott, LLC litigates cases throughout the nation on behalf of citizens of every continent. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Recently filed cases include: Guidant, Unisys, Investors Financial Services Corp, American Italian Pasta Co., Red Robin Burgers, Patterson Companies, Cyberonics and others.
Source: Scott + Scott, LLC
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