U.S. regulators filed a lawsuit against Berkshire Hathaway Inc's
The Securities and Exchange Commission alleged General Re knowingly provided substantial assistance to both AIG and Prudential in connection with their own securities violations.
According to the complaint, General Re entered into a series of sham reinsurance contracts with Prudential's
In 2000, after analysts criticized AIG for declining loss reserves and its stock dropped, General Re entered into two sham reinsurance transactions that allowed AIG to falsely report increases in both loss reserves and premiums written, the SEC alleged.
(Reporting by Rachelle Younglai; editing by Andre Grenon)