This is a securities fraud class action against Swiss Reinsurance Company and certain officers and directors.
Swiss Reinsurance is the world's largest reinsurer with 70 offices in more than 25 countries.
The class action complaint alleges that during the Class Period, defendants made false and misleading statements about Swiss Reinsurance's financial condition. Specifically, defendants failed to disclose that Swiss Reinsurance's Credit Solutions unit had written two credit default swaps that exposed Swiss Reinsurance to great financial risk. In a credit default swap, one party guarantees that a third party borrower will not default on a debt. In this case, Swiss Reinsurance guaranteed certain mortgage-backed securities which included some subprime and collateralized debt obligations.
When the existence and nature of the credit default swaps was disclosed, Swiss Reinsurance's stock price dropped from CHF97.55 to CHF87.55 (Swiss Francs) the next day.
Name (Stock Symbol)
Swiss Reinsurance Company
Swiss Reinsurance Company offers a broad portfolio of insurance products and is best known for its reinsurance business. It also offers financial services.
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