Skip to main content

There’s no older or more successful trick in the fraudster’s playbook than selling something worthless and/or nonexistent to a credulous senior. And so when the fast-talking cosmopolitan lawyers at Jones Day were charged with selling off a German pipe maker about to go belly-up, they (allegedly) knew exactly who to turn to.

Berkshire Hathaway… led by Warren E. Buffett, is suing Jones Day, the law firm that represented the owners of the pipe maker when it was sold to a Berkshire Hathaway subsidiary in 2017. The lawsuit, filed late last month, accuses Jones Day of helping to trick Berkshire Hathaway into paying five times what the German company was worth…. The lawsuit accuses Jones Day of withholding documents that would have exposed Wilhelm Schulz’s perilous financial state and calls the firm a “co-conspirator” in a “massive fraud….”

Wilhelm Schulz “was the corporate equivalent of a house about to go into foreclosure,” the lawsuit says. But Precision Castparts never knew about the revised loan agreement because Jones Day withheld it, the lawsuit contends.

Jones Day also did not disclose a report by the consulting firm KPMG, commissioned by Schulz, which concluded that the company faced an “imminent liquidity crisis,” according to the lawsuit. Nor, the suit says, did Jones Day inform Precision Castparts that a German lawyer had warned Wilhelm Schulz managers that they were legally obligated to declare bankruptcy.

Berkshire Hathaway Says Blue Chip Law Firm Aided Fraud [NYT]


Getty Images

Old Man’s Still Got It

Warren Buffett makes his coronavirus move.


Pay No Attention To How Much SPACs Are Padding Law Firms’ Bottom Lines

This is a matter of principle, they say without trace of irony.

Getty Images

Long-Term Indices Very Short Two Significant Long-Term Stocks

Warren Buffett and Jeff Bezos have been weighed in their scales and found wanting.

Getty Images

Buffett Mentee Has Learned To Go Small, But Has She Learned To Write A Randy Metaphor?

Tracy Britt Cool will no longer be workshopping Uncle Warren’s blue material.

Getty Images

Buy $10,000 Worth Of Kraft Products, Get Free Ticket To Buffettstock

Warren’s got to get creative to save this thing.

Getty Images

Woman Says ‘Yes’ To Warren Buffett

Which is good, because if Lisa Bridge said “no” or “maybe,” things might not have ended well.

Getty Images

Warren Buffett Defends Non-Existent Gun Investments

Don’t be ridiculous about Berkshire divesting from companies it doesn’t own but might if they get cheap enough.