Investment firm files complaint against AmTrust, Stone PointPosted On: Feb. 28, 2019 10:14 AM CST
Czech Republic-based investment firm Krupa Global Investments on Thursday said it filed an antitrust complaint against AmTrust Financial Services Inc. and Stone Point Capital LLC with the European Commission.
The complaint claims that the New York-based insurer and the Greenwich, Connecticut-based private equity firm violated EU regulations and engaged in anti-competitive business practices related to Amtrust’s 2018 privatization deal, Krupa said in a statement.
“Stone Point Capital, along with the Zyskind/Karfunkel family, together formed Evergreen LP, which purchased and privatized AmTrust in 2018 in a transaction that KGI strongly opposed and believed was suspicious. KGI contends that the AmTrust and Stone Point potentially engaged in advance of the aforementioned transaction in violation of EU law,” Krupa, a former significant shareholder of AmTrust, said in a statement.
Spokespeople at AmTrust and Stone Point were not immediately available for comment.
In its complaint, Krupa alleges that AmTrust and Stone Point coordinated the market behavior of AmTrust and insurers owned by Stone Point by agreeing to boycott AmTrust customers and not to compete with each other in certain areas of the insurance business, the statement said.
The complaint also alleges that AmTrust and Stone Point exchanged sensitive business information adversely affecting customers and thereby infringing EU antitrust regulations, Krupa said.
The company said it is asking the EU Commission to initiate a formal investigation into the alleged violations.
Both AmTrust and Stone Point have significant EU operations through subsidiaries making them accountable to EU regulations, Krupa said.
Krupa said it has also recently filed a complaint in Delaware Chancery Court against AmTrust alleging breach of fiduciary duty.