OMAHA, Neb. (AP) — A shareholder of Berkshire Hathaway Inc. has filed a lawsuit alleging that Warren Buffett and the company's board hurt investors by failing to act swiftly when they found out about stock trades that outgoing executive David Sokol made ahead of Berkshire's $9 billion takeover of chemical company Lubrizol.
Shareholder Mason Kirby filed the lawsuit in Delaware this week seeking to recover any improper gains that Sokol made on the 96,000 Lubrizol shares that he bought in January shortly before pitching the company to Buffett as an acquisition target.
“Sokol's trades and Buffett's failure to fully inform himself about these trades are in direct violation of the company's policy and amount to a breach of the duty of loyalty and due care owed to Berkshire and its shareholders,” the lawsuit said.
Buffett did not immediately respond to a message Tuesday. Sokol's assistant said he would not comment.
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