COURT DISMISSES SECURITIES PUTATIVE CLASS ACTION AGAINST BERMUDA PARENT OF REINSURANCE COMPANY
A securities fraud putative class action was filed against XL Capital Ltd., the Bermuda-based parent of reinsurer XL Reinsurance America, Inc., alleging a massive understatement of necessary loss reserves for liabilities of XL Reinsurance. The court granted a motion to dismiss the Second Amended Complaint, finding that the allegations failed to state a claim under the Private Securities Litigation Reform Act of 1995. Malin v. XL Capital Ltd., Case No. 03-2001 (USDC D. Conn. July 26, 2007).
