National Legal and Policy Center Opposes Warren Buffett's Motion to Dismiss Lawsuit

In a significant development for corporate governance and shareholder rights, the National Legal and Policy Center (NLPC) has filed a brief in federal court in Omaha, Nebraska, opposing Warren Buffett's and Berkshire Hathaway's motion to dismiss a lawsuit filed in May 2023. The lawsuit stems from the controversial arrest of NLPC's Chairman, Peter Flaherty, at Berkshire's 2023 Annual Meeting.

The incident occurred during Flaherty's presentation supporting NLPC's shareholder proposal to separate the positions of Chairman and CEO at Berkshire Hathaway. During his speech, Flaherty criticized Buffett's substantial financial support of the Bill and Melinda Gates Foundation, citing concerns over the foundation's promotion of Critical Race Theory and gender identity concepts.

According to the NLPC, Flaherty also addressed Bill Gates' reported relationship with convicted sex offender Jeffrey Epstein, a topic that had been covered in a Wall Street Journal article just days before the meeting. In response to these comments, Buffett allegedly cut Flaherty's microphone and ordered security to remove him from the arena, resulting in his arrest by an Omaha Police officer.

Paul Kamenar, NLPC Counsel, stated, "We look forward to having our day in court to hold Mr. Buffett and Berkshire Hathaway accountable for their actions." The NLPC argues that the silencing and arrest of a shareholder speaking in favor of a proposal is unprecedented in the history of U.S. public company annual meetings.

The lawsuit raises important questions about the limits of corporate control over shareholder meetings and the right of shareholders to voice concerns, even when they may be critical of company leadership or affiliations. It also touches on broader issues of free speech within the context of corporate governance.

The NLPC, founded in 1991, describes itself as an organization that promotes ethics in public life through research, investigation, education, and legal action. Their involvement in this case underscores the organization's commitment to holding corporate leaders accountable and advocating for transparent and ethical business practices.

As part of their legal strategy, the NLPC has submitted several exhibits to support their case, including a charge dismissal document, a transcript of the meeting, and a declaration from Peter Flaherty. These documents aim to provide a comprehensive account of the events that transpired at the Berkshire Hathaway annual meeting.

The federal court is expected to rule on Berkshire's motion to dismiss in the coming weeks. The outcome of this case could have significant implications for shareholder rights and the conduct of annual meetings across corporate America. It may also influence how companies handle dissenting voices and critical questions during shareholder gatherings.

This legal battle between the NLPC and Warren Buffett's Berkshire Hathaway highlights the ongoing tension between corporate leadership and shareholder advocacy groups. As investors and the public increasingly demand greater accountability and transparency from major corporations, cases like this may become more common, potentially reshaping the landscape of corporate governance in the United States.