A class action lawsuit has been filed against Bermuda-based Annuity and Life Re (Holdings), Ltd (the "Company") in the district court of Connecticut.

The complaint alleges that the defendants violated federal securities laws by issuing a series of materially false and misleading statements throughout the class period (February 12, 2001 and November 19, 2002).

The alleged misrepresentations include assertions that the Company had:

failed to account for embedded derivatives contained in its annuity reinsurance contracts in 2001;

understated liabilities and expenses

inadequate internal controls to ascertain true financial condition and as a result the value of the Company' balance sheet and financial results were materially overstated at all relevant times.

On November 19, 2002, the last day of the class period, the Company announced that it would be restating its financial results for 2000, 2001 and the first and second quarters of 2002 due to the Company having improperly accounted for embedded derivatives contained in its annuity reinsurance contracts during those years.

The Company' stock plummeted 44 percent on this revelation.

Any person who purchased securities of the company during the class period can join in the class action.