James River Defeats Buyer’s Suit Over Reinsurance Unit Sale

James River Group Holdings Ltd. beat US securities fraud claims that it misled a buyer about the worth of its sold-off Bermudan reinsurance company.

While James River is headquartered in North Carolina, Bermuda-based buyer Fleming Intermediate Holdings LLC’s private purchase of JRG Reinsurance Company Ltd. was outside the US, said Judge Jennifer L. Rochon while tossing the case Thursday. Another allegation that the people “controlling” James River were liable for federal securities law violations failed as a result of the lacking fraud claim, the US District Court for the Southern District of New York judge said.

Fleming, majority-owned by Altamont ...