Warren Buffett's Berkshire Hathaway Resolves Legal Dispute Over Alleged Buyout Terms Violation With Pilot Travel Centers

Warren Buffett’s Berkshire Hathaway Inc. BRK BRK has settled allegations over the violation of buyout terms concerning truck-stop-chain Pilot Travel Centers. The agreement was reached just before the trial was set to commence.

What Happened: Berkshire Hathaway, after buying an 80% stake in Pilot Travel from billionaire Jimmy Haslam for over $10 billion, faced accusations of improperly altering accounting methods. This action was alleged to deprive the Haslam family of their remaining 20% share. The two parties reached a settlement on Sunday, right before the trial was due to begin, Bloomberg reported.

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No public disclosure was made about the settlement details. However, this agreement is anticipated to facilitate Buffett’s acquisition of Haslam’s remaining 20% stake in Pilot Travel later this month, as per the original acquisition terms. The deal implies that all claims against each other will be dismissed, as affirmed by a spokesperson for Haslam.

The trial, which was set to be presided over by Judge Morgan Zurn in the Wilmington, Delaware Chancery Court, has been called off. Despite owning the NFL's Cleveland Browns, Haslam was set to testify live in court, but Buffett was not.

Why It Matters: The settlement follows a high-stakes corporate finance dispute between Buffett and Haslam over the accounting for the earnings of Pilot Travel Centers. Berkshire Hathaway holds a majority stake in Pilot Travel Centers, a company that has flourished under Haslam’s leadership. The disagreement centered around a complex accounting method that could impact a billion-dollar transaction, contributing to the conflict between the two billionaires.

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