In an order issued January 26, 2010, the Honorable Richard J. Sullivan of the United States District Court for the Southern District of New York dismissed federal securities fraud claims brought against the Firm's client, PXRE Group Ltd. (now known as Argo Group International Holdings, Ltd.), and several of the company's former officers.
The case concerns Hurricanes Katrina, Rita and Wilma, which struck the United States in the summer and fall of 2005. PXRE, a Bermuda reinsurance company, held numerous policies directly affected by the property damage caused by these unprecedented storms. The plaintiffs brought fraud claims under Sections 12(a)(2) and 15 of the Securities Act of 1933 and state law claims for negligent misrepresentation and common law fraud. The plaintiffs’ claims are based upon, among other things, alleged false statements concerning PXRE’s loss exposure contained in the Private Placement Memorandum and alleged misleading oral statements by PXRE’s former officers. The January 26, 2010 order granted the Firm's motion to dismiss in its entirety, holding that a claim under Section 12(a)(2) failed as a matter of law because the securities offering at issue was neither a public offering, nor integrated with a public offering.
This recent order of the district court follows a decision issued December 21, 2009 by the United States Court of Appeals for the Second Circuit, which affirmed the dismissal of a related federal securities fraud class action that was filed against PXRE Group Ltd. and several of the company's former officers pursuant to the Securities Exchange Act of 1934.
The team representing PXRE Group Ltd. in this matter included Bruce D. Angiolillo, Jonathan K. Youngwood, Janet Gochman, John C. Briody, David F.E. Tejtel and Magallie Kortright.