Warren Buffett’s Berkshire Sued by Billionaire Haslam Family Over Pilot Truck Stop Takeover

news.law October 30, 2023

245

Warren Buffett’s Berkshire Hathaway is being sued by the billionaire Haslam family, which accused the conglomerate of using improper accounting to devalue its remaining 20% stake in Pilot Travel Centers, the largest U.S. truck stop operator.

The family, including Cleveland Browns football team owner Jimmy Haslam, sold Berkshire a 38.6% Pilot stake for $2.8 billion in 2017 and another 41.4% stake for $8.2 billion in January. It said it has a right to sell the remainder under the same valuation methods on Jan. 1, 2024.

According to a complaint made public on Thursday in Delaware Chancery Court, Berkshire has unilaterally and without consent adopted “pushdown” accounting rules that artificially reduce Pilot’s earnings before interest and taxes, and “grossly” reduce how much the Haslams would receive if they sold their remaining stake.

U.S. Trade Tribunal Issues a Potential Import Ban on Apple Watches in Masimo Patent Fight

Landlord Indicted for Murder, Hate Crime in the Fatal Stabbing of a 6-Year-Old Palestinian Boy