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NY reinstates antitrust suit against Equitas

A New York state appeals court has reinstated an antitrust lawsuit brought by Global Reinsurance Corp against Equitas.

The case, which alleges that the run-off vehicle for Lloyd's pre-1993 non-life liabilities "violates New York's antitrust law", had been dismissed by a lower court, but was reinstated by a 4-1 margin in the state's Appellate Division, First Department.

The action alleges that the formation of Equitas in 1996 and centralisation of claims handling removed competition among Lloyd's syndicates on how claims were handled.

As a result, it alleges, Equitas has denied claims or paid out less or later than would have happened otherwise, and Global Re - itself in run-off - "has suffered millions of dollars in damages as a result".

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