2nd Circ. Gives Gen Re's $72M Fraud Deal Another Chance

Law360, New York (August 13, 2012, 8:13 PM EDT) -- The Second Circuit on Monday vacated a ruling that had stymied General Reinsurance Co.'s $72 million deal with investors to end securities fraud claims, determining a lower court used an improper analysis to reject the proposed settlement class.

The lawsuit accused Gen Re of participating in a sham $500 million reinsurance transaction with American International Group Inc. to help AIG to ease investor concerns about reductions in its loss reserves. U.S. District Judge Deborah Batts had refused to certify the Gen Re settlement class after ruling...
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