Shareholder Suit V. PXRE Over Katrina Losses Nixed

Law360, New York (March 5, 2009, 12:00 AM EST) -- A federal judge dismissed a proposed shareholder class action against PXRE Group Ltd. on Thursday after ruling that the plaintiffs' claims did not show that the reinsurer had a motive to understate the company's losses initially following Hurricane Katrina in order to raise more money before credit agencies could downgrade PXRE.

Judge Richard J. Sullivan of the U.S. District Court for the Southern District of New York found that the plaintiffs had failed to adequately plead the necessary "strong" inference of scienter under U.S. Court of...
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