Warren Buffett’s Berkshire Hathaway Inc. has reached a settlement over allegations of violating buyout terms with truck-stop-chain Pilot Travel Centers. The agreement was made just before the trial was set to begin.
Berkshire Hathaway purchased an 80% stake in Pilot Travel from billionaire Jimmy Haslam for over $10 billion. However, the company faced accusations of improperly altering accounting methods, which allegedly deprived the Haslam family of their remaining 20% share. According to Bloomberg, the two parties reached a settlement on Sunday.
No specific details about the settlement have been disclosed, but it is expected to facilitate Buffett’s acquisition of Haslam’s remaining 20% stake in Pilot Travel later this month, in accordance with the original acquisition terms. A spokesperson for Haslam confirmed that all claims against each other will be dismissed.
The trial, which was supposed to be presided over by Judge Morgan Zurn in the Wilmington, Delaware Chancery Court, has now been called off. While Haslam was set to testify live in court, Buffett was not.
The settlement marks the resolution of 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 the company, which has thrived under Haslam’s leadership. The disagreement revolved around a complex accounting method that could impact a billion-dollar transaction, leading to the conflict between the two billionaires.
The settlement has important implications for both Berkshire Hathaway and Pilot Travel Centers. It paves the way for Buffett to acquire the remaining stake in the company, solidifying Berkshire Hathaway’s control over the truck-stop-chain. Additionally, it resolves a potentially costly and time-consuming legal battle between the two parties.
Overall, the settlement between Berkshire Hathaway and Pilot Travel Centers brings an end to a contentious dispute and allows both parties to move forward with their respective plans. The resolution of this case will likely have a significant impact on the future of Pilot Travel Centers and Berkshire Hathaway’s investment portfolio.
