Editor, Mealey's Litigation Reports: Reinsurance and Insurance Insolvency

NEW YORK — A New York federal judge on Sept. 20 ruled that the former shareholders of Lion Holding Inc. are not entitled to a return of escrow funds that secured their obligation to indemnify a German reinsurer for claims arising from a personal accident reinsurance program (Robert D. Ferguson v. Hannover Ruckversicherungs-Akteiengesellschaft, No. 04-9254, S.D. N.Y.; 2007 U.S. Dist. LEXIS 61441).

U.S. Judge Peter K. Leisure of the Southern District of New York found that the shareholders failed to meet the conditions of the escrow agreement.