Firm Obtains Appellate Victory, Affirming the Dismissal of a Purported Class Action Complaint Against the Directors of an Insurance Company in a $2.5 Billion Acquisition

The Firm represents the directors of Medical Liability Mutual Insurance Company in a purported class action lawsuit against them arising out of the insurance company’s demutualization and its simultaneous acquisition for approximately $2.5 billion by a member of the Berkshire Hathaway Group of Insurance Companies. The trial court had dismissed the purported class action complaint on the basis that the lawsuit is a collateral attack upon the approval of the demutualization by the New York State Department of Financial Services, and the Superintendent’s determination that the purchase price paid was fair and equitable, and in the best interests of the policyholders and the public. On February 9, 2022, the Appellate Division, Second Department, affirmed the dismissal of the purported class action lawsuit on the basis of the collateral attack doctrine. Castagna, et al. v. Capotorto, et al., 2019-04656 (2d Dep’t Feb. 9, 2022).

On June 16, 2022, New York's highest court denied Plaintiffs' motion for leave to appeal to that court.

A copy of the appellate court’s decision is available here.