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Haslam family sues Pilot majority owner Berkshire Hathaway over accounting practices
Summary
The Haslam family is suing Berkshire Hathaway, claiming the company is using improper accounting practices that are decreasing the value of the remaining Haslam stake in Pilot truck stops. The lawsuit alleges the accounting practices violate the terms of the $10 billion acquisition of the nation’s largest truck stop chain. Jimmy Haslam, owner and operator of Knoxville-based Pilot Flying J since 1996, agreed to reduce the Haslam family’s stake in Pilot to 20% by 2023, with the remaining 20% stake to be sold to Berkshire Hathaway on January 1, 2024.
Q&As
What accounting practices is the Haslam family suing Berkshire Hathaway over?
The Haslam family is suing Berkshire Hathaway over "pushdown" accounting practices.
What did the 2017 agreement between the Haslams and Berkshire Hathaway state?
The 2017 agreement between the Haslams and Berkshire Hathaway stated that Berkshire Hathaway would acquire an additional 41.4% stake in 2023 to add to the 38.6% stake acquired in 2017 in order to obtain a majority stake in the Pilot company at that time, and that the Haslam family would be able to sell the remaining 20% stake in the company to Berkshire Hathaway on January 1, 2024, if they choose.
What is the family’s remaining stake in Pilot Travel Centers?
The Haslam family's remaining stake in Pilot Travel Centers is 20%.
Who replaced Pilot CEO Shameek Konar and CFO Kevin Wills following the Berkshire Hathaway takeover?
Adam Wright and Joe Lillo replaced Pilot CEO Shameek Konar and CFO Kevin Wills following the Berkshire Hathaway takeover in early 2023.
When did Cleveland Browns owner Jimmy Haslam begin owning and operating Pilot Flying J?
Cleveland Browns owner Jimmy Haslam began owning and operating Knoxville-based Pilot Flying J since 1996.
AI Comments
👍 It is admirable that the Haslam family is standing up for their rights and taking legal action against Warren Buffett's Berkshire Hathaway for their allegedly improper accounting practices.
👎 It is unfortunate that the Haslam family's stake in Pilot is being devalued by Berkshire Hathaway's alleged accounting practices.
AI Discussion
Me: It's about the Haslam family suing Berkshire Hathaway, the majority owner of Pilot Truck Stops, over its alleged improper accounting practices which are driving down the value of the Haslam family's remaining 20% stake in Pilot. They claim that this violates the terms of the $10 billion acquisition of the company in 2017.
Friend: Wow, that's a huge case! What do you think the implications of this lawsuit could be?
Me: Well, if the Haslam family is successful in their suit, it could mean that Berkshire Hathaway would need to change its accounting practices, which could be costly for the company. It could also mean that the Haslam family could be compensated for any losses they have suffered due to the improper accounting practices, though the amount of compensation could be difficult to determine. Additionally, it could mean that the agreement between the Haslam family and Berkshire Hathaway could be renegotiated, which could have an impact on other stakeholders.
Action items
- Research the details of the lawsuit and the accounting practices in question.
- Follow the developments of the lawsuit and any potential outcomes.
- Reach out to industry experts and other stakeholders to gain a better understanding of the implications of the lawsuit.
Technical terms
- Pushdown Accounting
- A type of accounting that involves the transfer of the cost of an asset from one period to the next. This is done by reducing the value of the asset in the current period and increasing the value of the asset in the next period.
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