Berkshire Hathaway Subsidiary Settles With SEC

According to the Securities and Exchange Commission, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) reinsurer General Re has agreed to pay nearly $100 million to settle several charges and a lawsuit related to the company's involvement in accounting frauds by American International Group (NYSE: AIG) and Prudential Financial (NYSE: PRU).

The SEC said that Gen Re has agreed to pay $12.2 million to settle charges that it helped AIG and Prudential manipulate and falsify their financial statements and that it will forfeit to the government about $5 million in fees it received from helping AIG falsify its financial statements.

The SEC also said that Gen Re will pay $19.5 million to the U.S. Postal Inspection Service Consumer Fraud Fund as part of a non-prosecution agreement unveiled by the Department of Justice.

The company will also pay $60.5 million to settle a class-action lawsuit on behalf of injured AIG shareholders.