Gen Re settlement approved by US District Judge

By Marc Castro

Sep 11, 2013 04:11 AM EDT

The USD 72 million settlement of the investor claims against General Reinsurance Corp. on allegations of fraudulent transactions conducted with American International Group Inc had been approved by a federal judge. The US District Judge Deborah Batts of Manhattan approved the deal after an appeals court reversed the decision of Batts to block the 2009 settlement.

The AIG investors are led by three Ohio public pension funds and they sued the companies in 2004 claiming a scheme conducted in late 2000 and early 2001 allowing AIG to improperly inflate the revenue and loss reserves of the company. Gen Re is a subsidiary of Warren Buffett's Berkshire Hathaway Inc.

According to the lawyer of the Ohio pension funds Thomas Dubbs, "This is the last piece of the AIG litigation." Both the Attorney General's office of Ohio and the leadership of the individual pension funds were pleased with the ruling from Judge Batts. 

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