Haslam Family Sues Warren Buffett's Berkshire Hathaway over Alleged Underpayment in Truck Stop Deal

Berkshire Hathaway Accused of Implementing "Pushdown Accounting" to Undervalue Remaining $3.2 Billion Stake in Pilot Travel Centers

The billionaire Haslam family has sued Berkshire Hathaway and Warren Buffett, alleging an attempt to artificially depress the price owed to the family for their remaining 20% stake in Pilot Travel Centers, a truck stop chain founded by Jim Haslam.
Berkshire Hathaway has paid nearly $11 billion since 2017 for the first 80% of Pilot. They allegedly changed the company's accounting practices to lower reported earnings, which are used to set the purchase price agreed upon in 2017.
The Haslam family argues that Berkshire Hathaway's shift to 'pushdown accounting' this year has resulted in higher depreciation and amortization costs, lower net income, and an unfair devaluation of their remaining stake. The family unsuccessfully argued against this change at Pilot board meetings but were outvoted by Berkshire Hathaway's board members.
The lawsuit does not disclose the exact loss the Haslams believe they will suffer, but it indicates that Berkshire Hathaway estimated its stake would be worth $3.2 billion without the accounting change.
The Haslams have asked the court to intervene due to this accounting disagreement and have requested that Pilot be asked to revert to its previous accounting method before they have to decide whether to sell their remaining stake early next year.