A class action has been filed against Fairfax Financial Holdings, Ltd. (FFH), certain of its officers and directors by stockholders who purchased the company's common stock between March 24, 2004 and March 21, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated April 11, 2006, a class action lawsuit was filed on behalf of all persons who purchased the debt securities (defined below) of Fairfax Financial Holdings, Ltd., against defendants Fairfax and certain of its officers and directors, alleging violations under the Securities Exchange Act of 1934, 15 U.S.C. sections 78j(b) and 78t(a) and Rule 10b-5, promulgated thereunder, 17 C.F.R. sections 240.10b-5. Specifically, the Complaint alleges that statements in the Prospectus omitted material information including, inter alia, (1) failure to detail the Company's increasing liquidity problems; (2) failure to detail second quarter 2004 transactions between Odyssey and Fairfax and to explain that the arrangements were structured to avoid a liquidity squeeze at Fairfax that would have occurred during the quarter; (3) failure to detail Fairfax's exposure stemming from the need to collateralize run-off business; (4) failure to detail the Company's reserves and whether they were adequate to address the Company's growing run-off operations; (5) failure to detail the Company's growing exposure to finite reinsurance agreements within the overall organization; and (6) failure to detail Fairfax's highly leveraged balance sheet and further omissions concerning the Company's equity position. The claims brought with respect to the Prospectus seek to pursue remedies under the Securities Act of 1933 (the "Securities Act") 15 U.S.C. sections 77k and 77l.

The debt securities at issue in this Complaint are: 7.75% notes maturing 04/26/12 ("7.75% Notes"); 8.25% notes maturing 10/01/15; 6.875% notes maturing 4/15/08; 8.3% notes maturing 4/15/26; and 7.375% notes maturing 4/15/18.

The Complaint also alleges claims on behalf of a sub-class of Class members who also suffered damages upon purchasing the 7.75% Notes pursuant to or traceable to the Company's August 24, 2004 prospectus ("Prospectus") filed by Fairfax with the SEC on August 25, 2004 to effectuate a $95 million aggregate principal amount debt flotation (the "Sub-Class").

If you bought Fairfax Financial Holdings, Ltd. securities between March 24, 2004 and March 21, 2006, inclusive, and would like to obtain information about the Fairfax Financial Holdings, Ltd. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.