AmTrust Wins Early Ruling Against Its Insurer on Securities Case

Forge Underwriting Ltd. failed to knock out a suit by AmTrust Financial Services Inc. seeking coverage for a securities class action alleging AmTrust misled investors about preferred stock delisting.

Forge couldn’t show that the securities suit arose out of a “wrongful act” committed after the cutoff date for coverage in an excess run-off directors and officers insurance policy issued to AmTrust, the US District Court for the Southern District of New York said in a March 13 order.

The underlying class action was brought by preferred stockholders who claimed AmTrust misrepresented that their shares would remain publicly listed after a ...