Federal Judge Orders Limited Discovery in Maiden Holdings Security Action

CAMDEN, N.J. — A federal judge has allowed limited discovery in a lawsuit accusing reinsurance provider Maiden Holdings Ltd. and its executives of omitting a cedent’s historical loss ratio information from the view of investors in violation of the Securities Exchange Act of 1934.

However, in the Aug. 6 order, Judge Renee M. Bumb of the U.S. District Court for the District of New Jersey ordered plaintiffs to file an amended complaint that “eliminates surplusage.” The judge also directed the parties to conduct limited discovery on the issue of whether the Maiden executive defendants sold stocks outside of their usual …