March 3, 2009

General Re Settles AIG-Related Claims

General Re Corp., a subsidiary of Berkshire Hathaway Inc. and a global reinsurance company, has agreed to a tentative settlement in the AIG securities class action pending in the S.D.N.Y. The case was originally filed in October 2004. The claims against General Re relate to its alleged participation in a fraudulent $500 million reinsurance transaction with AIG that allowed AIG to improperly inflate its loss reserves.

The General Re settlement is for $72 million. Last October, PwC settled the claims against it in the case for $97.5 million. CFO.com has an article on the settlements.

Posted by Lyle Roberts at March 3, 2009 11:31 PM | TrackBack
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