Shares of Berkshire Hathaway dipped as the U.S. government warned of a potential lawsuit against its power company, PacifiCorp, over alleged failure to cover $356 million in costs associated with the 2020 Slater wildfire [7f9b83fa]. PacifiCorp revealed in a U.S. Securities and Exchange Commission filing that the U.S. Department of Justice is potentially seeking more than $1 billion from the company to cover costs related to the 2020 wildfires in Oregon and California. The government has threatened to take the matter to court. This new development adds another layer of legal challenges for Berkshire Hathaway, which is already engaged in a complex and contentious lawsuit with the Haslam family over the valuation of Pilot Travel Centers [4f9ed269]. The outcome of these legal battles will have significant implications for the company and its stakeholders.
In addition to the wildfire lawsuit, victims of Montana asbestos pollution are taking Warren Buffet's railroad to court. BNSF Railway, owned by Warren Buffet's Berkshire Hathaway, faces accusations of wrongful death for failing to control clouds of contaminated dust. The victims are seeking justice and legal action against the railroad company. The railroad denies the charges [7f9b83fa].
Meanwhile, the family of Anthony Ditcharo, a mesothelioma victim, has filed a lawsuit against Union Pacific Railroad. Mr. Ditcharo originally filed the claim himself but passed away from his illness. His family is now pursuing the case on his behalf. The lawsuit alleges that Mr. Ditcharo was exposed to asbestos-containing products while working at various sites in Louisiana in the 1960s and 1970s. He accused his employers of negligence and held them responsible for strict liability. The family is continuing the lawsuit, bringing additional survival and wrongful death claims. The court has agreed to keep the lawsuit in federal court but may allow the family to remove their claim against Union Pacific in the future [aacf65cd].
Warren Buffett's company, Berkshire Hathaway, reported a steep drop in earnings due to the value of its investment portfolio plunging, but its core businesses prospered. Berkshire sold off 13% of its stake in Apple. Future CEO Greg Abel and Vice Chairman Afit Jain are helping Buffett field questions at the annual shareholder's meeting [a73aba47]. Boeing has locked out its private force of firefighters in the Seattle area over a pay dispute [a73aba47].
US employers added 175,000 jobs in April, down from 315,000 in March, potentially allowing the Federal Reserve to cut interest rates. Stocks rallied on Wall Street after the hiring cooldown was reported [a73aba47].
The government and Google made closing arguments in an antitrust trial to determine if Google's search engine is a monopoly. The final ruling is expected later this year [a73aba47].
The US Treasury Department loosened some rules governing electric vehicle tax credits, potentially making more EVs eligible for credits of up to $7,500 [a73aba47].
Apple's quarterly iPhone sales plunged 10%, but its stock price surged on dividend and stock buyback news [a73aba47].
Treasury Secretary Janet Yellen warned that threats to democracy risk US economic growth [a73aba47].
Aetna has agreed to settle a lawsuit over fertility coverage for LGBTQ+ customers [a73aba47].
The US Supreme Court has rejected Purdue Pharma's $6 billion opioids settlement that would have shielded the Sackler family, who controlled the drugmaker, from legal liability. In a 5-4 ruling, the court agreed with the Justice Department's argument that the Sacklers, who earned billions of dollars from selling highly addictive opioids, should not be granted sweeping legal protection. The court held that the bankruptcy code does not authorize such an order. The dissenting judges argued that the settlement was a shining example of the bankruptcy system at work and that rejecting it would leave opioid victims without compensation. The settlement had set aside $6 billion for victims of the opioid epidemic and protected the Sacklers from future civil claims [7988bad4].