Precision Castparts Agreed to Pay $21M to Settle Investor Lawsuit Over 2016 Sale
Precision Castparts Corp. has agreed to pay $21 million to settle a class-action lawsuit over the Portland company’s $37 billion sale in 2016.
A group of investors sued Precision Castparts following its sale to Berkshire Hathaway, Warren Buffett’s investment firm, arguing that the sale price undervalued the company. Such litigation is common following any large financial transaction involving publicly traded companies; the settlement represents 0.06% of Precision Castparts’ sale price.
Law360 first reported the settlement, filed Friday in U.S. District Court in Portland. The court must approve the settlement and set payment details for the plaintiffs and attorneys.
The company’s $37 billion sale is the largest sum ever paid for an Oregon company and the largest ever by Berkshire Hathaway. But Buffett has tacitly acknowledged having paid far too much.
