Claims Trimmed from Reinsurer’s $4.5 Million Fraudulent Wire Transfer Lawsuit

ORLANDO, Fla. — A Florida federal judge has dismissed a reinsurer’s state law claims accusing Truist Bank of failing to prevent a fraudulent transfer of $4.5 million in reinsurance proceeds and of failing to return the funds, ruling they are preempted by Article 4A of the Uniform Commercial Code.

However, Judge Anne Conway of the U.S. District Court for the Middle District of Florida further ruled that it is not clear whether Barents Reinsurance’s negligence claims based on conduct that “exacerbate[d] the earlier transfer injury” are also preempted.

Barents was required to pay a reinsurance claim submitted by its cedent. …