Berkshire Hathaway has accused the Haslam family, including Jimmy and his brother – who’s the former Governor of Tennessee, Bill Haslam – of offering bribes to multiple Pilot Flying J executives to inflate company profits to force Berkshire Hathaway to pay a higher price for the Haslam family’s remaining 20% of ownership in the company. This report is from Reuters.com.
The Haslam family and Berkshire Hathaway have been fighting for the past few months over the Haslam family’s remaining 20% stake in Pilot. In late October, the Haslam family sued Berkshire Hathaway, accusing Hathaway of changing their accounting rules to devalue the family’s 20% stake.
In 2017, Berkshire Hathaway and the Haslam family agreed to an arrangement where Hathaway would buy 80% of the company by 2023 and allow the Haslams an option to sell the remaining 20% share to Hathaway at the end of 2023. It’s reported that the 20% share is worth nearly $3 billion.
Berkshire Hathaway’s countersue alleges Jimmy Haslam of offering bribes to 15 Pilot executives to inflate company profits, promising the executives excessive end-year bonuses.
The Haslams have been struck by allegations of financial irregularities before. Soon after Jimmy Haslam bought the Cleveland Browns, Pilot Flying J was investigated over a rebate scam that resulted in a $92 million fine.
