The U.S. Court of Appeals for the Second Circuit has reversed a lower court’s refusal to certify a settlement class in an investor lawsuit against General Reinsurance Corp.

Southern District Judge Deborah Batts (See Profile) in 2010 had refused to approve a $72 million settlement obtained by investors whoclaimed that Gen Re engaged in a fraudulent transaction with American International Group Inc. in 2000 and 2001 allowing AIG to inflate its revenues and loss reserves.