RenRe Execs Targeted

Aggrieved investors have filed a proposed class action suit against several current and former RenaissanceRe Holdings Ltd. executives, claiming damages from misleading information.

The suit seeks class status for investors who purchased Renaissance securities between Jan. 24, 2002 and July 25. The suit was filed in U.S. District Court in Manhattan by the law firms of Goodkind Labaton Rudoff & Sucharow LLP, New York, and Goldman Scarlato & Karon P.C., Philadelphia.

The complaint names CEO James Stanard; President William Riker; John Lummis, chief operating officer; Michael Cash, senior vice president, specialty insurance; and Martin Merritt, controller.

The shareholder suit alleges that the company and the five individuals violated federal securities laws by knowingly issuing a series of false and misleading statements regarding the company's financial state, which had the effect of artificially raising the reinsurer's share price.

Earlier this week, the company said that Mr. Stanard had been given a notice that he was the possible target of a Securities and Exchange Commission civil enforcement action in connection with earnings restatements for the past three years.

The restatements stemmed from possible improper accounting of finite reinsurance transactions.