Insurer Denies Fraud In Understating Katrina Claims

Law360, New York (August 16, 2007, 12:00 AM EDT) -- PXRE Group Ltd. has moved to toss a class action lawsuit filed against it by shareholders who accused the insurer of purposefully understating its losses after Hurricane Katrina, arguing that it was just “an allegation of fraud by hindsight.”

PXRE, a Bermudian company that provides reinsurance to primary insurers, argued that plaintiffs could not launch a suit merely based on the fact that its preliminary estimates of how much capital it would lose from property destruction claims were inaccurate.

“Plaintiffs' motive allegations boil down to the...
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