First Mercury, Fairfax Deal Faces Investor Class Action

Law360, New York (November 10, 2010, 2:15 PM EST) -- An investor has hit specialty insurer First Mercury Financial Corp. with a putative class action hoping to block its planned $294 million acquisition by Fairfax Financial Holdings Ltd., alleging First Mercury's directors failed to look out for shareholders in the deal.

New Jersey resident Sanjay Israni said in a complaint filed Tuesday in the U.S. District Court for the Eastern District of Michigan that First Mercury directors breached their fiduciary duties to shareholders and that Fairfax abetted those wrongs.

Under terms of the transaction released in...
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