Bloomberg Law
Feb. 26, 2020, 8:14 PM

AmTrust Buyout Suit Gets Green Light Against Karfunkel Family

Mike Leonard
Mike Leonard
Legal Reporter

AmTrust Financial Services Inc.’s founding family and three of its directors must face claims that its 2018 take-private buyout was “grossly unfair” to non-insiders squeezed out by the deal, a Delaware judge ruled.

The Chancery Court lawsuit targets three members of the Karfunkel-Zyskind family, which owned 55% of the insurer before buying the rest, and AmTrust’s four other directors, who sat on the special committee that approved the transaction.

It accuses them of doctoring financials until about a year before the buyout, then taking the company private at a lowball price after news of the scheme tanked its market value. ...

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