WILMINGTON, Del. — A Delaware judge on Monday dismissed a shareholder lawsuit alleging that billionaire Warren Buffett and directors of Berkshire Hathaway Inc. failed to take proper action in response to stock trades by a former Berkshire executive ahead of the company's $9 billion acquisition of chemical manufacturer Lubrizol.
Vice Chancellor J. Travis Laster ruled that the shareholders failed to demonstrate before filing their lawsuit, as required by Delaware law, that the Berkshire board was not capable or willing to take legal action itself, or that it would be futile for shareholders to demand that it do so.
The shareholders argued that the Berkshire board has been sitting on its hands for more than a year since the executive, David Sokol, resigned. But Laster suggested there could be entirely proper reasons why the board has delayed a decision on whether to sue Sokol, including a pending investigation by the Securities and Exchange Commission.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
