Warren Buffett and his Berkshire Hathaway conglomerate have emerged unscathed from an insider trading case, winning dismissal on Monday of a shareholder lawsuit. The company’s shareholders sued its board for failing to take legal action against former executive David Sokol, who violated Berkshire’s insider trading policy.
Sokol resigned in 2011, after admitting to buying shares of chemical company Lubrizol Corp. and then pressuring Berkshire CEO Warren Buffett to purchase the company. According to Buffett, Sokol made a $3 million profit on the Lubrizol shares. The value of those shares skyrocketed after Berkshire announced its plans to buy the company.