Billionaire Warren Buffett's Berkshire Hathaway Inc. has more than a few problems with Scripps News reporter Mark Greenblatt's recent story on the way subsidiaries of Berkshire handle asbestos claims.

Berkshire's lengthy 7-page statement on Greenblatt's stories, begins with a Mark Twain quote: “Never pick a fight with people who buy ink by the barrel.”

Nevertheless, Berkshire continues, “We are about to ignore Twain's sage advice.”

Read Greenblatt's entire story HERE.

After interviewing more than 20 sources—some of which Greenblatt says remain confidential—and reviewing lawsuits, allegations of a widespread delay and deny strategy are made against Berkshire subsidiaries National Indemnity Co. and Resolute Management Inc. The early October stories allege cancer victims have been wrongfully denied compensation by subsidiaries that manage legacy liabilities of other insurers and reinsurers.

Greenblatt attaches email correspondence with Ajit Jain (pictured), head of Berkshire Hathaway Reinsurance Group. Of Jain, Buffett has said, “Charlie would gladly trade me for a second Ajit. Alas, there is none.” “Charlie” refers to Charlie Munger, Berkshire's vice chairman.

Berkshire says, “There are many material inaccuracies and misleading statements in Mr. Greenblatt's pieces.”

“Our work in the run-off and legacy liability area involves thousands of contested claims and complex litigations,” says Berkshire. “The full details and circumstances of these matters are not easily (or appropriately) reduced to sound bites for an eye-catching-headlined article about our company.”

In direct reponse to an allegation from Greenblatt that Berkshire has little interest in compromising, the Omaha, Neb.-based conglomerate says, “The complete facts are wholly inconsistent with Mr. Greenblatt's insinuations that we unreasonably resist compromise.”

The case involves 3 men who sued the owner of a Kansas City building for injuries related to asbestos. Sources allege one insurer wanted to settle but Berkshire held up a mediated deal, offering the men just $26,000 each.

Berkshire says the value of the claims was between $67,000 and $110,000 and the share of the other insurer was about 27 percent, on average–leaving the value of the claims to Berkshire at between $17,018 and $34,870. The company offered an average of $26,000 per claim.

Special Reports /

Berkshire Hathaway: Asbestos Claims-Handling Story Inaccurate, Misleading

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