Converium Holding AGCohen, Milstein, Hausfeld and Toll, P.L.L.C. represents a class of investors who purchased or acquired the securities of Converium Holding AG between December 11, 2001 and September 2, 2004 (the "Class Period"). Converium is a major multi-line re-insurance company, which spun off from Zurich Financial Services in a 2001 IPO. On July 14, 2005, Judge Mukasey of the District Court for the Southern District of New York appointed Cohen Milstein as co-lead counsel and its client, Avalon Holdings, Inc. ("Avalon"), as co-lead plaintiff along with the Public Employees’ Retirement System of Mississippi ("Mississippi") in this litigation. On September 23, 2005, Avalon and Mississippi filed a Consolidated Amended Class Action Complaint (the "Complaint"). The Complaint alleges violations of the Securities Exchange Act of 1934 by Converium, and its CEO Dirk Lohmann, CFO Martin Kauer, and North America CEO Richard Smith, as well as by Converium's parent company Zurich Financial Services. The Complaint also asserts claims under the Securities Act of 1933 against Converium, Zurich Financial Services, Lohmann, Kauer and Smith. Specifically, the Complaint alleges that Defendants failed to disclose that Converium's maintained loss reserves in its Converium North America subsidiary were inadequate; that Converium, contrary to previous representations, did not establish adequate loss reserves to cover claims by Converium North America policy holders; that reserve increases previously announced by Converium were insufficient; and that as a result of the understatement of loss reserves, Converium's earnings and assets were materially overstated during the Class Period. On March 1, 2006, Converium restated its December 31, 2000 financial statements acknowledging many of the allegations set forth in the Complaint. On September 4, 2007, Judge Cote of the District Court for the Southern District of New York preliminarily approved a $30 million settlement of all claims against Zurich Financial Services. Litigation against Converium and the Officer Defendants is ongoing. |
