New Class Action???

[Nnejad]

Okay, I've been a shareholder of Fairfax for a long time, but uhm... what???

 

http://finance.yahoo.com/news/Gilman-Pastor-LLP-Announces-iw-2469742959.html?x=0

 

The Complaint alleges that Fairfax violated federal securities laws by failing to disclose the following facts: (i) the Company's revenues and earnings were negatively impacted by increased competition in its marketplace, including from companies with lower cost offerings; (ii) a number of significant operational problems existed at the Company that negatively impacted its business; and (iii) the Company had shifted its focus, and a significant amount of resources, away from its core higher education readiness and Penn Foster core businesses in pursuit of unproven projects to the detriment of its business, financial performance and prospects.

As a result of Defendants' misleading statements, shares of FFH traded at artificially high price levels.  Then on March 22, 2006, Fairfax revealed that the Securities and Exchange Commission ("SEC") had subpoenaed records of all of Fairfax's finite reinsurance contracts in the previous year.  Consequently, shares of FFH dropped significantly...

 

 

In fact, all three points don't sound anything like the Fairfax I know.

[Parsad]

It's just another class-action that jumped in with the other class-actions.  I can't remember who the first one was a few months ago, and then after that they all jumped in.  This last one apparently was a little slower than the others, and decided to show up to the party fashionably late.  They are scumbucket, parasitic lawyers that want in at the trough...if there is one!  Cheers!

[Parsad]

By the way, I think the first one was probably intiated by some of the hedge funds that are going to trial against Fairfax later this year.  They need some negative publicity to present to the judge/jury, as much of the negative press for the last two years has been against the hedgies...in particular the ones being sued by Fairfax!  Cheers!

[cwericb]

As per Nnejad's bold text

 

"...(iii) the Company had shifted its focus, and a significant amount of resources, away from its core higher education readiness and Penn Foster core businesses in pursuit of unproven projects to the detriment of its business, financial performance and prospects."

 

I know this is in English, but why can't I read it? What in hell does this mean "...its core higher education readiness..." ??? Did Prem flunk out of university that year?

[Nnejad]

Sorry I should have been more clear. I think this law firm has totally jumbled up its paperwork. The way I read it, they are accusing Fairfax Financial of being in the for-profit education business. I googled Penn Foster and got a career training college.

[beerbaron]

When is FFH trial exactly?

 

Anybody going to listen to the pleas?

 

BeerBaron

[cwericb]

Looks like these guys are grasping at straws. They are probably the kind of lawyers that give the profession a bad name.

 

Re the trial, I have been trying to follow it from the start but it is not easy to find coverage. I had a bookmark for one of the law firms where you could get some info but that was a couple of years ago. Does anyone know if they have had a discovery hearing or whatever it is called in the States?

[RRJ]

Sorry I should have been more clear. I think this law firm has totally jumbled up its paperwork. The way I read it, they are accusing Fairfax Financial of being in the for-profit education business. I googled Penn Foster and got a career training college.

 

Yeah,I think they did not catch this reference to another complaint they recently filed.  Be careful using forms.  Boy that looks bad to a law clerk reviewing the complaint.  Cookie cutter class action.