Berkshire Hathaway Inc. and Chief Executive Officer Warren Buffett were sued by a shareholder over trades in Lubrizol Corp. by former Berkshire manager David Sokol.
Berkshire investor Mason Kirby, suing to recover damages for the company, contends that Sokol, also a defendant, hurt the firm by taking a stake in Lubrizol before recommending to Buffett that Berkshire buy the company, according to papers made public Tuesday in Delaware Chancery Court in Wilmington.
“Sokol knew that Buffett would closely consider and likely take his recommendation,” Kirby said. “As a result of Sokol’s unethical behavior, Berkshire suffered significant reputational losses and other damages.”
Sokol bought 96,060 shares of Lubrizol in early January before recommending that Omaha-based Berkshire acquire the company, Buffett said in a March statement.
Buffett didn’t immediately respond to an emailed request for comment. A spokeswoman for MidAmerican Energy didn’t immediately return a call seeking comment from Sokol.
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