Gen Re $72 Million Settlement Wins Final ApprovalBob Van Voris
General Reinsurance Corp.’s $72 million settlement of investor claims that it participated in a fraudulent transaction with American International Group Inc. was approved by a federal judge.
U.S. District Judge Deborah Batts in Manhattan approved the accord yesterday. An appeals court last year reversed Batts’s decision to block the 2009 settlement.
AIG investors, led by three Ohio public pension funds, sued in 2004 alleging the companies were involved in a scheme in late 2000 and early 2001 that allowed New York-based AIG to improperly inflate its revenue and loss reserves. Gen Re is a unit of Warren Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc.
“This is the last piece of the AIG litigation,” said Thomas Dubbs, a lawyer for the investors. The Ohio Attorney General’s office and the pension funds were pleased with Batts’s ruling today, he said.
The case is In Re American International Group Inc. Securities Litigation, 10-4401, U.S. Circuit Court of Appeals for the Second Circuit (Manhattan).