Fairfax Financial Holdings might have systematically mislead investors about its financial condition.

This is an Investigation and pending securities fraud class action lawsuit against Fairfax Financial Holdings on behalf of all persons who purchased debt securities and equity securities Fairfax Financial Holdings, Ltd.

The class action complaint alleges that Fairfax Financial omitted material information in its offering documents, including:

(1) failure to detail the Fairfax Financial's increasing liquidity problems;

(2) failure to detail second quarter 2004 transactions between Odyssey and Fairfax and to explain that the arrangements were structured to avoid a liquidity squeeze at Fairfax that would have occurred during the quarter;

(3) failure to detail Fairfax's exposure stemming from the need to collateralize run-off business;

(4) failure to detail Fairfax Financial's reserves and whether they were adequate to address its growing run-off operations;

(5) failure to detail the Company's growing exposure to finite reinsurance agreements within the overall organization; and

(6) failure to detail Fairfax's highly leveraged balance sheet and further omissions concerning its equity position.

The debt securities at issue in this class action are: 7.75% notes maturing 04/26/12; 8.25% notes maturing 10/01/15; 6.875% notes maturing 4/15/08; 8.3% notes maturing 4/15/26; and 7.375% notes maturing 4/15/18.