Fairfax awarded $11m in alleged stock manipulation case

A jury verdict has awarded property/casualty re/insurer Fairfax Financial Holdings damages of $10.9 million against Exis Capital Management and related Exis companies, Adam Sender and Andrew Heller, according to a corporate statement.

The payment is related to a lawsuit filed in 2006 seeking damages for alleged stock market manipulation and includes punitive damages of $3.0 million against Exis, $2.25 million against Sender and $0.25 million against Heller.

In 2006, Fairfax launched a multibillion-dollar lawsuit filed against New York-based hedge fund Exis Capital Management, fund manager Adam Sender and other defendants, accusing them of conspiring with financial analysts and researchers to organize a "bear raid" by allegedly spreading false rumours and driving down Fairfax' stock price. The alleged conspiracy began in 2003 and severely depressed Fairfax’s stock price. Fairfax had sought as much as $8 billion in damages.

Fairfax intends to continue to pursue its remaining claims against other defendants in that lawsuit by way of appeals against previous court decisions, the company said.

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