IRB Re: the 2020 Squadra letter, a false Berkshire claim, restated accounts and the proceedings since
IRB Re: the 2020 Squadra letter, a false Berkshire claim, restated accounts and the proceedings since: a public-record watch file compiled by Falling Shares Intelligence from filings and exchange disclosures, as of 2026-11-09. In February 2020 the investment firm Squadra questioned IRB Re's profits; the company then re-filed its 2019 statements after independent investigations.
From a short seller's letter in February 2020 and a false claim that Berkshire Hathaway held shares to US and Brazilian proceedings, with mixed outcomes through July 2026.
Falling Shares Intelligence, Edited by Wung Thomas, Editor-in-Chief. As of .
Summary
- In February 2020 the investment firm Squadra questioned IRB Re's profits; the company then re-filed its 2019 statements after independent investigations.
- The US SEC and Department of Justice alleged in April 2022 that a former finance head planted a false story that Berkshire Hathaway had invested; Berkshire held no shares.
- In Brazil the CVM brought a case against 11 former executives and directors; in December 2025 it accepted settlements from seven, and on 28 July 2026 it acquitted the former finance head (by majority) and the former chief executive (unanimously) in a separate case.
Key figures
| Share fall after Berkshire denial | More than 40% (After a rise of more than 6% on the false report) |
|---|---|
| Irregularities found by independent review | About R$60m (Bonuses and share buyback volumes) |
| CVM settlement, Dec 2025 | R$3.5m (R$500,000 per person, seven people) |
The Squadra letter, the Berkshire claim and the restatement
Squadra questions IRB Re's profits
Squadra Investimentos published a letter in February 2020 accusing IRB Re of inflating profit through questionable accounting. The CVM case that followed concerns, among other things, loss-ratio differences in the June 2019 figures, pension-fund entries and revenue from exclusive funds. (Feb 2020)
False claim that Berkshire Hathaway had invested
The SEC alleged a fabricated shareholder list placed Berkshire Hathaway fourth as of 18 February 2020, and that a fake thank-you email was circulated. IRB shares rose more than 6%. On 3 March 2020 Berkshire denied ever investing; the SEC complaint says it held zero shares. IRB shares then fell more than 40%. (Feb to Mar 2020)
Independent investigation, criminal complaint and re-filed 2019 accounts
A KPMG and Felsberg investigation found irregularities of about R$60m involving bonuses and the shares offered in the February and March 2020 buyback. In August 2020 IRB said investigations led it to re-file its 2019 financial statements and that it had complained to prosecutors in Rio de Janeiro. It said the conduct occurred without the board's knowledge and that the officers responsible were no longer with the company. (Jun to Aug 2020)
US and Brazilian proceedings
SEC civil complaint and DOJ criminal charges against former finance head
The SEC filed a civil complaint against Fernando Passos, IRB's former finance head, alleging he led a scheme to lift the stock with the false Berkshire story and seeking penalties and a bar from serving as an officer or director. CFO Dive reports he also faces separate US criminal charges. (Apr 2022)
CVM charges 11 former executives and directors
The CVM concluded its inquiry and accused 11 former directors and board members of accounting fraud, including the former finance head, former chief executive and former board members who later held other prominent posts. Later reports say the CVM also pursued separate disclosure-related charges. (Aug 2024)
Brazilian federal court accepts criminal charge
Capital Aberto reports that a federal court accepted a criminal charge in September 2025 over alleged market manipulation by former executives, linked to false information on Berkshire Hathaway fund investments, after a complaint by a governance institute. (Sep 2025)
Outcomes favourable to those charged
CVM accepts settlements from seven former officers
The CVM board accepted a R$3.5m settlement, R$500,000 per person, closing the case against six former board members and one former executive. The CVM report found no evidence that the board members knowingly took part in the irregularities or acted for personal gain. (Dec 2025)
CVM acquits former finance head and former chief executive in a separate case
The CVM said that on 28 July 2026 its board resumed judgment of a case against former IRB officers. It acquitted the former executive vice-president for finance and investor relations, by majority, of charges including selective disclosure, false market information about the chairman's resignation, exceeding the share buyback limit and paying administrators beyond the shareholder-approved compensation limit. It acquitted the former president, unanimously, of the charge of paying employees and administrators beyond that limit. (28 Jul 2026)
Standard
This file compiles regulator and court documents, exchange filings, company statements and published reporting about IRB-Brasil Resseguros S.A.. Allegations are attributed to those who made them. An investigation is not a charge, a charge is not a finding, and nothing here is a finding of wrongdoing unless a competent authority has made one. IRB Re says its board did not know of the conduct and that the responsible officers had acted individually and left the company, and the former officers in the proceedings have the right to contest the allegations. Individuals are not named unless an official document names them and they are central; otherwise roles are used. This is news coverage for information only, not investment advice.
Right of reply
IRB-Brasil Resseguros S.A., and anyone named in a record cited here, can send corrections or comments to info@fallingshares.com (or directly to the Editor-in-Chief, Wung Thomas, at wungthomas@fallingshares.com). Material responses will be published alongside the relevant entry.