NEW YORK, Aug. 19, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of RenaissanceRe Holdings. ("RenaissanceRe" or the "Company") (NYSE:RNR) (BMG7496G1033) between January 24, 2002 and July 25, 2005, inclusive (the "Class Period").
RenaissanceRe, through its subsidiaries, provides reinsurance and insurance worldwide. The complaint alleges that defendants' Class Period representations regarding RenaissanceRe were materially false and misleading when made for the following reasons: (1) that the Company entered into and improperly accounted for various contracts with Inter-Ocean Reinsurance Company, Ltd, which allowed the Company to effectively manipulate and smooth its earnings during the Class Period: (2) that the Company improperly accounted for premiums received during the first three quarters of 2004 on multi-year reinsurance contracts, which all caused the Company to misstate its net income figures for the Class Period; (3) that the Company lacked adequate internal controls; (4) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP").
On February 22, 2005, RenaissanceRe announced its plan to restate its financial statements. On February 28, 2005, RenaissanceRe announced that it had received a subpoena from the SEC in connection with an industry-wide investigation into non-traditional insurance products. On June 15, 2005, RenaissanceRe announced that it had received a subpoena from the United States Attorney for the Southern District of New York. On July 11, 2005, RenaissanceRe announced that Michael W. Cash resigned following his refusal to accept service of a subpoena from the SEC calling for his testimony in its investigation into the restatement of the Company's financial statements. On July 25, 2005, the Company announced that James N. Stanard, the Company's Chairman and Chief Executive Officer, had received a "Wells Notice" from the SEC staff in connection with the SEC's ongoing investigation into the restatement of the Company's financial statements.
On this news, shares of RenaissanceRe fell $4.25 per share, or 9 percent, to close on July 25, 2005, at $42.98 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired RenaissanceRe securities on any world exchange between January 24, 2002 and July 25, 2005, inclusive, and sustained damages, you may, no later than September 26, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi, Christopher Hinton, or Bradley Dyer of Murray, Frank & Sailer LLP.