2nd Cir. Upholds Dismissal of ‘Shadow Reinsurance’ Action Against Life Insurer, Says Appellants Lacked Article III Standing

NEW YORK — A federal appeals court has upheld dismissal of 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 a Feb. 23 ruling, the 2nd Circuit U.S. Court of Appeals said the appellants cannot rely solely on a violation of New York Insurance Law in order to satisfy Article III’s injury-in-fact requirement. The mere fact that an insurer may make a misleading representation does not require or even …