Zenith-Fairfax Deal Hit With Shareholder Lawsuit

An advocacy group in San Diego has filed suit against the board of directors of Zenith National Insurance Corp. alleging the Woodland Hills-based insurer's planned $1.3 billion sale to Fairfax Financial Holdings Ltd. of Toronto, Canada, undervalues the company.The lawsuit filed Monday by the Shareholders Foundation Inc. seeks to represent Zenith shareholders who purchased their shares before Feb. 18, the day Fairfax, Zenith's largest shareholder, announced plans to pay $38 per share in cash for the nearly 92% of outstanding stock it doesn't already own.The Zenith board said it had ...