Investor’s Lawsuit Accusing Holding Company Owner of Failing to Obtain Reinsurance Remanded

NEW ORLEANS — A Louisiana federal judge has remanded for lack of diversity an action in which an investor accuses the owner of an insurer holding company of reneging on his promise to obtain sufficient reinsurance for natural disasters, causing a $3 million investment to be lost when Hurricane Ida hit the state.

In a Nov. 9 order, Judge Sarah S. Vance of the U.S. District Court for the Eastern District of Louisiana ruled one of the defendants, Certain Underwriters of Lloyd’s London, is a Louisiana citizen under the state’s direct action statute, destroying diversity.

Michael Toffoli, the owner of …