Appellate Court Upholds Dismissal of Investors' Suit Against PXRE

NEW YORK - The 2nd Circuit U.S. Court of Appeals has upheld the dismissal of a class action that accused a reinsurer of materially misstating loss estimate reports in order to deceive insurance rating agencies and investors as to the true extent of losses arising from three 2005 hurricanes. Condra v. PXRE Group Ltd., et al., No. 09-1370 (2nd Cir.).

In a Dec. 21 summary order, the appellate court affirmed that plaintiffs failed to sufficiently plead scienter.

PXRE, a Bermuda-based reinsurer, specialized in offering catastrophe and "risk excess" reinsurance related to, among other events, hurricanes. The three individual defendants, Jeffrey …