By Steve Tuckey

Aggrieved investors have filed a class-action suit against fiveRenaissanceRe Holdings Ltd. executives in U.S. District Court inManhattan in connection with their possible accountingmisdeeds.

The legal action follows the company's announcement that bothChief Executive Officer James Stanard and Michael Cash, a seniorvice president who resigned from the company, have been givennotice they face possible civil enforcement actions by the U.S.Securities and Exchange Commission.

In addition to Mr. Stanard and Mr. Cash, the suit names asdefendants William Riker, CEO of the Glencoe Holdings Groupsubsidiary; John Lummis, Renaissance chief operating officer andchief executive officer; and senior executive Martin Merritt.

The SEC has subpoenaed the Bermuda-based primary and reinsurancecarrier in connection with its investigation of alleged improperuse by some companies of non-traditional insurance products toinflate their earnings statements.

Last month, after it was disclosed that Mr. Stanard was given a"Wells" notice that he is a possible target of an SEC enforcementaction, his company's shares fell 9 percent. The week before thatannouncement, Mr. Cash, a Bermuda citizen, resigned rather thanaccept subpoena service and the company stock fell 3 percent.

The plaintiff attorneys said the prospective class action seeksto represent investors who bought RenaissanceRe stock betweenJanuary 2002 and last month.

Earlier this year, the company announced a restatement of2001-2003 financial results that could stem from improperlyaccounted finite-risk transactions.

Fitch Ratings, in reaction to the SEC notices, commented that:"Although numerous companies have received subpoenas that Fitchbelieves are likely similar to those received by RenRe, and Fitchbelieves RenRe is cooperating with those subpoenas, it alsobelieves that the company faces heightened exposure to these issuesbecause of its restatement."

Callout:

Possible finite risk accounting misdeeds prompt class-actionfiling