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David Sokol & Berkshire Hathaway: Insider Trading or Simply a Violation of the Corporate Opportunity Doctrine?

By now, everyone and his brother has had an opinion on the l'affaire Sokol. I've poked around a little and given it some thought. I think there are two issues. First is the corporate opportunity issue. I think that's pretty clear. The second, and more ambiguous issue, is the potential...

Delaware Corporate Law and the New Litigation Against Berkshire Hathaway, Warren Buffett, et al.

Kirby v. Sokol, et al., Del. Ch. No. 6392, is the caption of a lawsuit filed earlier this week in the Delaware Court of Chancery which arises out of the recent resignation of the heir apparent to the Oracle of Omaha, Warren Buffett, based on widely-reported allegations in the mainstream press and...

New Litigation Filed In Delaware Against Berkshire Hathaway, Warren Buffett, et al.

Kirby v. Sokol, et al., Del. Ch. No. 6392, is the caption of a lawsuit filed earlier this week in the Delaware Court of Chancery which arises out of the recent resignation of the heir apparent to the Oracle of Omaha, Warren Buffett, based on widely-reported allegations in the mainstream press and elsewhere...

Thoughts About Sokol's Lubrizol Trades and the Berkshire Derivative Suit

Berkshire Hathaway Chairman Warren Buffett was not exaggerating when he stated at the opening of the company's March 30, 2011 press release ( here ) that the release "will be unusual." Not only did Buffett disclose the resignation of David Sokol as Chairman and CEO of several subsidiaries...

Slippery People: Corporate Governance at Berkshire Hathaway

Warren Buffet announced the sudden resignation of his heir apparent, David Sokol, on March 30, 2011. Berkshire Hathaway shareholders, fundamental style value investors, law professors , and the business media have been talking about it ever since. However, Buffett doesn't want us to question...

Thoughts On Shareholders' Derivative Claim Against Berkshire Hathaway

Berkshire Hathaway Chairman Warren Buffett was not exaggerating when he stated at the opening of the company's March 30, 2011 press release ( here ) that the release "will be unusual." Not only did Buffett disclose the resignation of David Sokol as Chairman and CEO of several subsidiaries...

Berkshire Report on Sokol Trades

These are not good facts for Sokol. From the Berkshire board's report on Sokol's trading : Mr. Buffett was initially unimpressed with Lubrizol as apotential acquisition, but told Mr. Sokol to let him know what he learned at the meeting. He also told Mr. Sokol that he was unfamiliar with...

New Development in the Berkshire-Hathaway/Sokol Matter

We previously wrote here about a recent complaint filed in the Delaware Court of Chancery in connection with allegations that David Sokol, a member of Warren Buffett's inner circle at Berkshire Hathaway, profitted personally from what might be considered a corporate opportunity. Today, Professor...

Warren Buffet, Berkshire Hathaway and the End of Armageddon-Some Lessons Learned

We have previously written about the importance of getting your investigation right before publicly announcing the results. In other words, do not allow your CEO, as Renault did, to go on national television and decree that three (former) executives had foreign bank accounts filled with money from the...

Buffet, Sokol and Reporting to the SEC

In the post on Tuesday we wrote and discussed several points about Warren Buffet, Berkshire Hathaway and David Sokol. One of the issues was disclosure to the Securities and Exchange Commission (SEC) of any possible securities violations. Another issue was the support provided by Warren Buffet at...