AmTrust Sues Insurer Over Securities Delisting Litigation Costs

AmTrust Financial Services Inc. is alleging its own insurer breached a directors and officers policy by refusing to cover costs in a securities lawsuit from investors who said AmTrust misled them about preferred stock delisting.

Forge Underwriting Ltd.'s refusal to pay caused AmTrust to suffer at least $2.3 million in monetary damages, AmTrust said in a complaint filed Monday in the US District Court for the Southern District of New York.

The underlying lawsuit was brought by preferred stockholders who claimed AmTrust misrepresented that their shares would remain publicly listed after a 2018 transaction that took the company private. That ...