Bernstein Liebhard LLP Announces Investigation of Zenith National Insurance Corporation Merger
Thursday, February 18, 2010
Bernstein Liebhard LLP is investigating whether the Board of Directors of Zenith National Insurance Corporation (“Zenith”) (NYSE: ZNT) breached its fiduciary duty to its shareholders in agreeing to sell Zenith to Fairfax Financial Holdings, Ltd. (“Fairfax”).
Under the terms of the transaction, Zenith shareholders will receive $38 in cash for each Zenith share of common stock they own for a total transaction value of approximately $1.4 billion.
The investigation concerns whether the Zenith Board of Directors breached their fiduciary duties to Zenith stockholders by failing to adequately shop Zenith before entering into this transaction and whether Fairfax is underpaying for Zenith shares, thus harming Zenith stockholders.
Bernstein Liebhard has pursued hundreds of securities and consumer cases and recovered approximately $2 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last seven years.