Gen Re To Pay $90M To Settle 'Sham' Claims

Law360, New York (January 20, 2010, 6:48 PM EST) -- Berkshire Hathaway Inc. subsidiary General Reinsurance Corp. has agreed to pay over $90 million to settle claims that it schemed with American International Group Inc. and Prudential Financial Inc. to defraud investors of hundreds of millions of dollars.

Gen Re will fork over $19.5 million to the U.S. Postal Inspection Service Consumer Fraud Fund to avoid criminal prosecution by the U.S. Department of Justice and pay $12.2 million to settle a U.S. Securities and Exchange Commission action, the agencies said in separate statements.

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