Law office of Brodsky & Smith said that it is investigating potential claims against the board of directors of Zenith National Insurance Corporation relating to the proposed acquisition by Fairfax Financial Holdings. Under the terms of the offer, Zenith shareholders would receive $38 for each share of Zenith stock they own.
According to Brodsky & Smith, the investigation concerns possible breaches of fiduciary duty and other violations of state law related to the Zenith board’s approval of the proposed acquisition.
In addition, the Zenith shareholders will need additional information to know what actions the board took to adequately shop the company before entering into the transaction and whether Fairfax is underpaying for Zenith, resulting in harm to the Zenith shareholders.
Zenith National is engaged in the workers’ compensation insurance business through its wholly-owned subsidiaries, Zenith Insurance Company and ZNAT Insurance Company. Zenith Insurance Company operates in California and Florida, with business in 43 additional states and the District of Columbia. ZNAT Insurance Company conducts business in Arizona, California, Iowa, Texas and Utah.