N.Y. Federal Judge Dismisses ‘Shadow Reinsurance’ Action Against Life Insurer for Lack of Standing

NEW YORK — A New York federal judge has dismissed a class action accusing a life insurer of misleading customers by engaging in “shadow reinsurance” transactions, ruling that the plaintiffs lack Article III standing because they could not show a concrete injury as a result of the insurer’s conduct.

In an Oct. 19 order, Judge Denise Cote of the U.S. District Court for the Southern District of New York held that plaintiffs’ “conclusory allegations of current risk do not suffice to confer Article III standing.”

Maria Robainas and others (“Plaintiffs”) brought a putative class action on behalf of those who …