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Case Status:    SETTLED
On or around 01/18/2008 (Date of order of final judgment)

Filing Date: July 27, 2005

On January 30, 2008, the Court entered the Order signed by U.S. District Judge William H. Pauley, III, awarding attorney fees and expenses. That day, the Court entered the Order and Final Judgment. The case is now closed.

According to a press release dated January 22, 2008, a New York federal judge has approved a $13.5 million settlement of a securities class action between Renaissance Re Holdings and stockholders who sued the reinsurer for allegedly engaging in sham reinsurance transactions that artificially increased the company's earnings. Last September, U.S. District Judge William Pauley III granted a preliminary approval of the settlement but decided to render a final judgment on whether the deal was "fair, adequate and reasonable" in January (BestWire, Oct. 5, 2007). In his ruling, Pauley stated that there was no doubt the settlement was the result of arm's length negotiations. However, the judge balked at the request by class counsel, which consists of attorneys for the lead plaintiffs, to be paid $3.37 million or what amounts to 25% of the settlement. By the judge's calculation, the $3.37 million fee yields a blended hourly rate of approximately $1,640. Also, a 25% attorney's fee will leave less than $10 million, after reimbursement of expenses, to be divvied up by 52,000 plaintiffs, said the judge, who called the request unreasonable. Pauley ruled that the class counsel should instead take home $1.33 million, a recovery of about 10%.

In a press release dated October 5, 2007, the action has been certified as a class action for settlement purposes and that a Settlement for Thirteen Million Five Hundred Thousand Dollars ($13,500,000) has been reached. A hearing will be held before the Honorable William H. Pauley in the United States District Court for the Southern District of New York, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, NY 10007, at 12:00 p.m., on January 11, 2008, to determine whether: (1) the proposed Settlement and plan of allocation of Settlement proceeds should be approved by the Court as fair, reasonable and adequate; (2) Co-Lead Counsel's application for an award of attorneys' fees and reimbursement of expenses should be approved; (3) Lead Plaintiffs should be reimbursed for their reasonable costs and expenses (including lost wages) directly related to their representation of the Class in the litigation; and (4) the claims against Defendants should be dismissed with prejudice.

On December 4, 2006, a Second Amended Consolidated Class Action Complaint was filed. On April 13, 2007, a Stipulation of Settlement was filed, and on April 16, 2007, the Plaintiffs filed a motion for preliminary approval of settlement

According to the Company’s FORM 10-Q For The Quarterly Period Ended September 30, 2006, beginning in July 2005, several putative class actions were filed in the United States District Court for the Southern District of New York in respect of the Company. In December 2005, these actions were consolidated and in February 2006, the plaintiffs filed a Consolidated Amended Complaint, purportedly on behalf of all persons who purchased and/or acquired the publicly traded securities of the Company between April 22, 2003 and July 25, 2005. In June 2006, the defendants filed motions to dismiss the Consolidated Amended Complaint. On October 24, 2006, before those motions were ruled upon, counsel for the lead plaintiffs requested permission from the Court to move for leave to file a second amended complaint. On October 30, 2006, the defendants consented to that request. Once the new complaint is filed, it is expected that the defendants will file motions to dismiss the new complaint.

Several purported shareholder class action lawsuits have been filed against RenaissanceRe Holdings Ltd. and certain of its present and former executive officers
alleging that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1034 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of false and misleading statements to the market regarding the Company's financial condition. The complaint further alleges that these statements were false and misleading because:

-- In 2001, RenaissanceRe entered into various contracts with Inter-Ocean, which were used by Defendants to smooth and manipulate the earnings of the Company in the years 2002 through 2004; -- RenaissanceRe failed to properly account for the timing of the recognition of reinsurance recoverables, which had the impact of misstating net income by as much as 12 percent in a given year; -- RenaissanceRe failed to properly account for the timing of the recognition of premium on multi-year ceded reinsurance contracts in the first three quarters of 2004; -- As a result, the Company's financial reports were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP").

The complaint further alleges that beginning in mid 2004, numerous companies involved in the reinsurance industry began receiving subpoenas regarding their business practices, and inquiring about their use and sale of reinsurance contracts. On February 22, 2005, RenaissanceRe announced that it planned to restate its financial statements for 2001, 2002, and 2003 to correct "accounting errors associated with reinsurance ceded by the Company." In addition, RenaissanceRe announced that it "had discovered an error in the timing of the recognition of premium on multi-year ceded reinsurance contracts for the first three quarters of 2004." On July 11, 2005, the Company issued a press release announcing that it had received and accepted the resignation of Michael W. Cash, Senior Vice President of Specialty Reinsurance for the Company, after he voluntarily refused to accept the subpoenas of the SEC calling for his testimony in its investigation of the Company's restatement. On July 25, 2005, the Company announced that Defendant Standard had received a "Wells Notice" from the SEC in regard to the agency's investigation of the Company's financial statements. In reaction to this development, shares of RenaissanceRe dropped $4.25 per share to close at $42.98, from its close of $47.23 on July 22, 2005, on extraordinarily heavy volume.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Prop. & Casualty)
Headquarters: Bermuda

SECURITIES INFORMATION:

Ticker Symbol: RNR
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


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COURT: S.D. New York
DOCKET #: 05-CV-06764
JUDGE: Hon. William H. Pauley III
DATE FILED: 07/27/2005
CLASS PERIOD START: 01/24/2002
CLASS PERIOD END: 07/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Goldman Scarlato & Karon P.C.
    101 W. Elm Street, Suite 360, Goldman Scarlato & Karon P.C., PA 19428
    484.342.0700 484.342.0700 · info@gsk-law.com
  2. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  3. Law Offices of Alfred G. Yates
    519 Alleghany Bldg., 429 Forbes Avenue, Law Offices of Alfred G. Yates, PA 15219
    412.391.5164 ·
  4. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  5. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  6. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  7. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  8. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  11. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 05-CV-06764
JUDGE: Hon. William H. Pauley III
DATE FILED: 12/04/2006
CLASS PERIOD START: 04/22/2003
CLASS PERIOD END: 07/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Labaton Sucharow & Rudoff LLP
    100 Park Avenue, 12th Floor, Labaton Sucharow & Rudoff LLP, NY 10017
    212.907.0700 212.818.0477 · info@labaton.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  5. Schiffrin Barroway Topaz & Kessler, LLP (Radnor)
    280 King of Prussia Road, Schiffrin Barroway Topaz & Kessler, LLP (Radnor), PA 19087
    610.667.7706 610.667.7056 · info@sbtklaw.com
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No Document Title Filing Date