In a decisive turn of events, Warren Buffett’s Berkshire Hathaway and Pilot have successfully concluded negotiations, bringing an end to their legal tussle in Delaware over the valuation of Jimmy Haslam’s truck stop chain.
On Sunday, both companies issued separate statements confirming their agreement to settle the Delaware litigation, putting to rest all claims and counterclaims between Pilot, Berkshire Hathaway, Pilot Travel Centers, and National Indemnity Company.
The settlement comes as a welcome development, sidestepping what could have been a billion-dollar trial scheduled to commence on Monday. The non-jury trial, set to unfold in Delaware’s Court of Chancery, aimed to ascertain the value of the Haslam family’s remaining 20% stake in Pilot Travel Centers, the preeminent U.S. truck stop chain.
The Haslam family, having previously sold 80% of Pilot to Berkshire for $11 billion across two transactions in 2017 and January 2023, found themselves in a contentious battle over accounting practices. Both parties had accused each other of employing accounting maneuvers to manipulate Pilot’s earnings before interest and tax (EBIT), a crucial factor in determining the value of the Haslams’ residual 20% stake.
With the court-scheduled trial canceled on Saturday, details of the settlement remain undisclosed by Pilot, and Berkshire Hathaway has yet to comment on the matter.
This resolution marks the end of a legal saga that began when the Haslams filed a lawsuit against Berkshire in October the previous year, alleging that the conglomerate altered its accounting to diminish its liabilities if the family chose to sell the 20% stake in 2024. In response, Berkshire countersued on November 28, accusing Jimmy Haslam of attempting to bribe Pilot executives with millions to inflate earnings in 2023, detrimentally impacting Pilot’s long-term value.
The courtroom drama, poised to determine the 20% stake’s value in Knoxville-based Pilot, alleged by the Haslams to be $3.2 billion before Berkshire’s accounting alteration, concludes with this settlement. Berkshire disputed this valuation, setting the stage for the parties to lay down their legal arms and reach a compromise.
As the legal clouds dissipate, this resolution underscores a pragmatic step towards reconciliation, closing the chapter on a dispute that captivated the business world’s attention.
