First Horizon Can't Dodge Reinsurance Kickback Suit

Law360, Philadelphia (February 28, 2013, 1:58 PM EST) -- A Pennsylvania federal judge Wednesday allowed a putative class action to move forward against First Horizon National Corp., which is accused of engaging in a scheme through which insurers pay kickbacks disguised as reinsurance premiums in exchange for referrals.

U.S. District Judge Harvey Bartle found the plaintiffs’ allegations that First Horizon provided misleading mortgage documents were sufficient to justify the delay in filing First Horizon had claimed warranted the dismissal of the suit as time-barred under the Real Estate Settlement Procedures Act of 1974.

“Plaintiffs are...
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