AmTrust’s $13 Million Deal to Settle Delisting Suit Approved

A $13 million settlement between AmTrust Financial Services Inc. and investors who say it misled them about preferred stock delisting has received final approval from a federal court.

And a one-third cut for attorneys’ fees is reasonable, Judge Katherine Polk Failla said Wednesday for the US District Court for the Southern District of New York.

Individual investor Jan Martínek served as class representative in the suit. He alleged the insurance company misled holders of its preferred stock about whether the securities would remain listed on the New York Stock Exchange following a go-private merger.

The court certified a class of ...