Berkshire Hathaway, Buffett Sued Over David Sokol’s Lubrizol Trades

Reuters reports that Warren Buffett’s former top lieutenant David Sokol, and the rest of Berkshire Hathaway Inc’s (BRK-A) board of directors were sued on Tuesday by an investor over a trading scandal that cost Sokol his job.

The lawsuit, Kirby v. Sokol et al, Delaware Chancery Court, No. 6392, filed in Delaware’s Chancery Court by Berkshire shareholder Mason Kirby, calls for disgorgement of Sokol’s illegal investment gains, and seeks to recuperate damage done to the organization’s track record and goodwill.

Sokol, who served as chairman of MidAmerican Holding Co. and Johns Manville as well as Chairman and CEO of NetJets, had been seen as a potential successor for Buffett until he resigned last month after revealing he bought shares of lubricant maker Lubrizol Corp (LZ) before pitching the company to his boss as a possible acquisition. Berkshire recently agreed to acquire Lubrizol for nearly $10 billion.

In early afternoon trading, BRKA gained $10.00, or 0.01%, to $120,535.00.

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