GEICO Files $1.8 Million Lawsuit Challenging Thousands Of No-fault Claims

WOODBURY, N.Y. - In a $1.8 million lawsuit filed on June 11, GEICO has challenged an alleged no-fault scheme involving the submission of thousands of suspect no-fault claims to the company ( Government Employees Insurance Company, et al. v. Michael D. Green, M.D., et al. , No. CV10-2671, E.D. N.Y.)....

A Closer Look at Buffett's Annual Letter to Berkshire Shareholders

On February 26, 2011, Berkshire Hathaway issued Chairman Warren Buffett's much-anticipated annual letter to the company's shareholders ( here ). Although aficionados of Buffett's letters will not be disappointed, this year's letter is largely focused on Berkshire's performance...

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...

McKenna Covers The Berkshire Hathaway Annual Meeting

There are many ways journalists, investors, and Warren Buffett himself refer to the Berkshire Hathaway Annual Meeting, held in Omaha, Nebraska. These short-cuts and sobriquets add a larger-than-life aspect to what is typically, for almost any other public company, a rather perfunctory affair. Barring...

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...

LexisNexis Corporate and Commercial Insights: Francis Pileggi Discusses the Berkshire Hathaway Shareholder Derivative Action and the Taiwan’s Increasing Interest in Delaware Corporate Law

On this episode of the LexisNexis Corporate & Commercial Insights, Steve Berstler speaks to Francis G.X. Pileggi, Member-in-Charge, Eckert Seamans Cherin & Mellott, LLC, Wilmington, DE, about the shareholder derivative action against Warren Buffett and Berkshire Hathaway as well as the increasing...

The Berkshire Hathaway Corporate Governance Performance

Warren Buffet carefully cultivates a CEO-savant persona. Most media enable him. His latest stunt, ostensibly meant to save Bank of America while closing a savvy deal for Berkshire Hathaway, garnered laudatory headlines. Bank of America spun Buffett's $5 billion investment for maximum effect...

A Closer Look at Buffett's Letter to Berkshire Hathaway Shareholders

The annual letter to Berkshire Hathaway shareholders of Warren Buffett, the company's Chairman, is anticipated every year as much (or arguably more) for its commentary on the financial world and the economy as it is for its discussion of the company's performance. This year's letter (...

Not Required, But Still Appropriate - Judge Glenn Appoints Examiner in ResCap

The chapter 11 case of mortgage lender and servicer Residential Capital, LLC ("ResCap") is fascinating on a number of levels. Its parent company, Ally Financial, Inc. ("AFI"), hopes to use ResCap's bankruptcy to extricate itself from potential liabilities arising from the collapse...

Book Review: “Berkshire Beyond Buffett”

What Warren Buffett has accomplished at the head of Berkshire Hathaway is nothing short of astonishing. Not only has he built a massive company, but he has done it while maintaining an unparalleled reputation for business integrity. The man is an American business icon. He is also mortal. Buffett is...