N.Y. Federal Judge Dismisses Bermudian Reinsurer’s Securities Fraud Action

WHITE PLAINS, N.Y. — A New York federal judge has dismissed an action in which a Bermudian reinsurer accused a holding company of violating the Securities Exchange Act by fraudulently inducing it to purchase $5 million in stock, ruling that the transaction was foreign and therefore does not fall under the Act.

In a March 24 order, Judge Kenneth Karas of the U.S. District Court for the Southern District of New York concluded that the transaction was between two Bermudian companies and thus “predominantly foreign.”

Cavello Bay Reinsurance Ltd. is a Bermuda company owned by Enstar Group Ltd. In 2015, …