Bermuda-based reinsurer PXRE Group, Ltd. has been accused in a stockholders lawsuit of making false and misleading statements and withholding hurricane loss information to artificially inflate share prices.
The Radnor, Pa.-based law firm Schiffrin & Barroway, LLP, made the charges in a securities class action lawsuit against the reinsurer filed in U.S. District Court in Manhattan.
According to the complaint, company officials failed to disclose to investors the full impact of Hurricanes Katrina, Rita and Wilma and the losses of up to $788 million. The resulting news caused a downgrade in its credit and financial strength rating.
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