This bug has been fixed in Hardy (version 418-1).
>From the upstream changelog:
Major changes between "less" versions 406 and 409
* Fix bug which caused screen to fail to repaint when window is resized.
** Changed in: less (Ubuntu)
Status: Confirmed => Fix Released
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less-pager does not update when window is resized
https://bugs.launchpad.net/bugs/137244
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