Settlement Talks Ongoing in $75.7M Dispute Involving Stock Purchase Agreement

BOSTON — A Massachusetts federal judge has suspended the summary judgment briefing schedule for 60 days to facilitate settlement talks in an action in which Pennsylvania General Insurance Co. (PGIC) is accused of breaching a stock purchase agreement by failing to pay or administer claims.

On March 13, Chief Judge F. Dennis Saylor of the U.S. District Court ordered that SPARTA Insurance Co. to file its reply and opposition by May 15, and PGIC to file its reply in further support by June 23.

In June 2005, PGIC and American Employers Insurance Co. (AEIC) entered into a reinsurance agreement, under …