Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Fairfax Financial Holdings, Ltd. -- FFH

25 April 2006

The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Fairfax Financial Holdings, Ltd. ("Fairfax" or the "Company") (NYSE:FFH) between March 24, 2004 and March 22, 2006, inclusive, (the "Class Period").

The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements in press releases and SEC filings. Specifically, defendants failed to disclose the following facts: (i) defendants allowed Fairfax to enter into bogus reinsurance contracts with its captive subsidiaries, Odyssey Reinsurance Holdings Ltd. and Northbridge Financial; (ii) defendants did not maintain adequate systems of internal operational or financial controls within Fairfax, such that the officers and directors of the Company could assure that its reported financial statements were true, accurate or reliable; (iii) Fairfax's statements and reports were not prepared in accordance with GAAP and SEC rules; and (iv) defendants lacked any reasonable basis to claim that Fairfax was operating according to guidance endorsed by defendants, or that the Company could achieve such guidance.

At the end of the Class Period, defendants revealed that V. Prem Watsa and others related to the Company had received subpoenas from U.S. market regulators concerning Fairfax's finite risk insurance business, and that market regulators are investigating these finite risk insurance transactions to determine if they were improperly used to artificially inflate the Company's earnings and profits. Shares of Fairfax declined almost 30% in the days following these disclosures.

If you are a member of the class, you may, no later than June 12, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).

While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net

CONTACT: Schatz & Nobel, P.C.

Wayne T. Boulton or Nancy A. Kulesa

(800) 797-5499

www.snlaw.net

sn06106@aol.com, e-mail

Source: primezone

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