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Business Berkshire Hathaway: David Sokol Misled Warren Buffett Nati Harnik

Berkshire Hathaway: David Sokol Misled Warren Buffett

Berkshire Hathaway took a much harsher tone toward David Sokol, the former executive accused of insider trading, than Warren Buffett previously had. A report from Berkshire’s directors said Sokol’s disclosures about stock purchases were “misleadingly incomplete” and “violated the duty of candor” he owed the company. They said they may also take legal action against Sokol, who personally profited by $3 million after Berkshire purchased chemical-maker Lubrizol in March. Sokol’s lawyer claims, however, that Sokol told Buffett about his personal stake in Lubrizol before recommending that Berkshire Hathaway purchase the company.

April 28, 2011 2:20 AM