Fairfax's Claims Survive In $8B Suit Over Short Selling Scam

Law360, New York (June 29, 2012, 5:01 PM ET) -- A New Jersey judge on Tuesday refused to toss Fairfax Financial Holdings Ltd.'s $8 billion suit over an alleged short selling scam by broker-dealer Morgan Keegan & Co. and Exis Capital LLC, finding the Canadian insurer had suffered “massive” economic loss from a campaign of negative information that prompted the suit.

Superior Court Judge Stephan Hansbury said there is enough evidence to let Fairfax proceed to trial with claims that Morgan Keegan and Exis conspired with stock analysts to spread false rumors to devalue Fairfax stock...
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