Gen Re Pushes 2nd Circ. To Revive $72M Fraud Settlement

Law360, New York (January 9, 2012, 6:20 PM EST) -- General Reinsurance Corp. on Monday asked the Second Circuit to resurrect its $72 million class action settlement with investors who claim it participated in securities fraud, arguing the district court was wrong to unilaterally kill the agreement.

Investors claim Gen Re violated securities fraud laws by participating in a sham $500 million reinsurance transaction with American International Group Inc., a transaction that allegedly helped inflate AIG reported revenues over two quarters in 2000 and 2001.

A lower court judge killed the deal in September, citing purported...
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