Posted on 12 Apr 2010
Berkshire Hathaway has been sued by an ex-manager of its recreational-vehicle business who claimed he was fired after bringing allegations of "millions of dollars" of fraud to executives including chairman Warren Buffett, Bloomberg reports.
In an April 5 complaint, Brad Mart claimed that Buffett failed to take any action to correct the deficiencies at the RV maker, Forest River. A representative for Berkshire said Mart never told Buffett, in three conversations, about unethical behavior, and that a company probe found no illegal activity.
“Mart did not alert Buffett to any unethical, fraudulent or illegal activities” at Forest River, said Berkshire Secretary Forrest Krutter in an interview with Bloomberg.
The complaint alleges that Mart was fired in early 2005 as a result of reporting unethical behavior by Forest River and Peter Liegl, the firm’s CEO.
He is seeking the position as CEO, which he claims he was promised after helping to arrange Berkshire’s 2005 deal to buy Forest River for around $800m.
Mart also asked for damages including reimbursement for his loss on the sale of his home in Illinois when he purchased a new property in anticipation of getting the promotion. He accused Forest River of breach of contract and said Liegl threatened his life.