Another class action suit brought against RenRe.
RenaissanceRe is facing a growing list of fraud suits in the US with law firms alleging the company broke securities laws by issuing inaccurate financial statements. The first case was filed against the Bermuda reinsurer at the end of July, the same week the SEC announced there could be possible civil action against several executives.
A “Wells notice” was served on chief executive James Stanard and others at the company, indicating the SEC may accuse the recipients of wrongdoing, but offering them the chance to mount a defence.
The first law firm to file was Goodkind Labaton Rudoff & Sucharow, followed by Hartford-based Schatz & Nobel, Schiffrin & Barroway, Stull, Stull & Brody, Alfred G Yates Jr, PC and Scott & Scott LLC. And more are expected to follow. A RenRe spokesman said the company has a policy against commenting on pending litigation.
Most of the companies have filed lawsuits seeking class action status in US District Court for the Southern District of New York and seek to represent people who bought RenRe shares between 2002 and 25 July 2005. Class action lawsuits often follow civil actions from federal regulators, as private investors seek compensation for buying securities based on inaccurate corporate information.
In February, RenRe said it planned to restate earnings from 2001 through 2003 because of “accounting errors” associated with its use of finite insurance contracts with InterOcean, a company which is now in run off and was partially owned by RenRe.