Shares of Berkshire Hathaway were lower Tuesday on news that it is being sued by a New York City-based bicycle courier company. Breakaway Courier Systems said in the complaint that Warren Buffet’s holding company misled them into paying for a workers’ compensation plan that cheats employers. Breakaway alleges Berkshire of “siphoning” premiums through an assortment of illegal shell companies, with premiums being directed to unlicensed out-of-state insurers, according to Reuters. The situation resulted in what Breakaway describes as a “reverse Ponzi scheme.”
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