Securities Law Ends Great Western’s $153 Million RICO Claim

A Utah insurance company can’t pursue racketeering claims against a group involved in an alleged fraud because it had the option of bringing a securities suit instead, a New York federal district judge said.

Great Western Insurance Co. accused a group of interconnected individuals and entities involved in the reinsurance industry of costing it $153 million, and pursued Racketeer Influenced and Corrupt Organizations Act claims against them in the U.S. District Court for the Southern District of New York.

But it could have filed a securities suit instead, and the Private Securities Litigation Reform Act prohibits using conduct that would ...