Securities Fraud Case Against RenaissanceRe Holdings Ltd. is Filed By Scott + Scott, LLC
16 August 2005 - 8:24AM
PR Newswire (US)
SEC Probe into Restatement May Result in Charges Brought Against
CEO COLCHESTER, Conn., Aug. 15 /PRNewswire/ -- Scott + Scott, LLC
(http://www.scott-scott.com/) represents client shareholders in a
securities class action filed in the United States District Court
for the Southern District of New York against RenaissanceRe
Holdings Ltd. ("RNR") (NYSE: RNR; "RenaissanceRe" or the
"Company"). Purchasers of securities in RNR during the Class Period
from January 24, 2002 through July 25, 2005 inclusive (the "Class
Period") are members of the purported class. RNR is a global
provider in reinsurance and insurance and maintains its principal
place of business in Bermuda. Scott + Scott has had success in
litigating securities cases involving Bermudian reinsurance
companies. If you purchased RNR securities during the Class Period
and wish to discuss this action or have questions concerning this
notice or your rights as a class member, you may contact this firm
for more information. Scott + Scott will provide you with case
materials, answer all questions regarding your participation and
rights and assist you with other services that the firm provides.
There is no cost or fee to you. Contact Scott + Scott partner Neil
Rothstein at (800/332-2259, ext. 22 or cell 619/251-0887) or
attorney Amy K. Saba at (800/332-2259, ext. 26). The complaint
filed on August 5th by Scott + Scott, LLC alleges that during the
Class Period, RenaissanceRe and certain individual defendants
violated the Securities Exchange Act of 1934. Specifically, the
complaint alleges that various Company financial statements filed
with the U.S. Securities and Exchange Commission ("SEC") were
fraudulent as a result of: (i) problematic finite reinsurance
recoverables, which led to a misstatement of net income by as much
as 12% in a given year; (ii) improper accounting for the timing of
recognition of premiums on multi-year ceded reinsurance contracts
during the first three quarters of 2004; and (iii) noncompliance
with rules outlined in the Generally Accepted Accounting Principals
("GAAP"). On July 25, 2005, RenaissanceRe reported that the SEC
served the Company's Chief Executive Officer, James N. Stanard,
with a Wells Notice, indicating that SEC officials plan to
recommend that charges be brought against Mr. Stanard for
violations of federal securities laws. In its statement,
RenaissanceRe also said the SEC separately issued a Wells Notice to
Michael W. Cash, formerly Senior Vice President of Specialty
Reinsurance. Mr. Cash resigned last month, after refusing to comply
with a SEC subpoena requesting his testimony in an investigation
into the three-year restatement of the Company's earnings announced
by RenaissanceRe in February. The SEC has been conducting an
ongoing investigation into the restatement of the Company's 2001,
2002 and 2003 financial statements. The effect of the restatement
was to lift the Company's 2001 and 2003 net income by $20.6 million
and $1.3 million, respectively, and lower its 2002 net income by
$21.9 million, the Company reported and the complaint alleges.
RenaissanceRe, like many insurance industry companies, has been
subpoenaed in recent months by state and federal regulators
investigating whether companies have used finite risk products to
manipulate their results. Scott + Scott, LLC litigates cases
throughout the nation on behalf of citizens of every continent. The
firm dedicates itself to client communication and satisfaction and
currently is litigating major securities, antitrust and employee
retirement plan actions throughout the United States. The firm
represents pension funds, charities, foundations, individuals and
other entities worldwide. Recently filed cases include: Guidant,
Unisys, Investors Financial Services Corp, American Italian Pasta
Co., Red Robin Burgers, Patterson Companies, Cyberonics and others.
DATASOURCE: Scott + Scott, LLC CONTACT: Neil Rothstein, partner,
+1-800-332-2259, ext. 22, or cell +1-619-251-0887, , or Amy K.
Saba, attorney, +1-800-332-2259, ext. 26, , both of Scott + Scott,
LLC Web site: http://www.scott-scott.com/
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