LOS ANGELES, May 31, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of PXRE Group Ltd. ("PXRE" or the "Company") (NYSE:PXT) during the period July 28, 2005 through February 16, 2006, inclusive (the "Class Period"). Also included are those who purchased their securities in a secondary offering on October 3, 2005. The matter is pending in the United States District Court for the Southern District of New York.
The complaint alleges in part that defendants violated federal securities laws by making false and misleading statements concerning the true financial condition of PXRE. Specifically, the complaint alleges that defendants failed to disclose: (i) the full financial impact on the Company's insurance business concerning hurricanes Katrina, Rita, and Wilma; (ii) that the financial cost to PXRE concerning these hurricanes had doubled to an estimated $758 million to $788 million; (iii) that the magnitude of the loss would seriously effect PXRE's financial condition and that it would lose key credit ratings from A.M. Best; (iv) 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 (v) that as a result of the foregoing, defendants' statements during the Class Period with respect to its loss estimates for the 2005 hurricane season were unreasonable when made. It is also alleged that when the true financial condition of the Company was revealed on February 16, 2006, shares of PXRE fell approximately 65%, from $7.85 to $4.05 per share.
Since a class has not yet been certified, you are not represented by counsel in this matter. If you purchased or acquired PXRE securities from July 28, 2005 through February 16, 2006 inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is July 3, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your PXRE retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca