SPARTA Insurance Files 2nd Amended Complaint in Mass. Federal Reinsurance Case

BOSTON — A Massachusetts federal judge has allowed SPARTA Insurance Co. to file a second amended complaint (SAC) in its dispute with Pennsylvania General Insurance Co. (PGIC) over payment of claims relating to a stock purchase agreement and reinsurance contract.

After Chief Judge F. Dennis Saylor of the U.S. District Court for the District of Massachusetts issued the order on Feb. 28, SPARTA filed the SAC, which adds two breach of contract claims based upon the same agreements already at issue in the case.

In June 2005, PGIC and AEIC entered into a reinsurance agreement, under which AEIC’s liabilities were …