The National Legal and Policy Center (NLPC) has filed a brief in federal court in Omaha, Nebraska, opposing Warren Buffett and Berkshire Hathaway's motion to dismiss a lawsuit aimed at holding them accountable for the arrest of NLPC Chairman Peter Flaherty. The incident occurred during Berkshire Hathaway's 2023 Annual Meeting when Flaherty was presenting a shareholder proposal advocating for the separation of the roles of Chairman and CEO for better corporate governance.
During his presentation, Flaherty criticized Buffett's significant financial contributions to the Bill and Melinda Gates Foundation. He highlighted the foundation's promotion of Critical Race Theory, which controversially posits that “math is inherently racist,” and its Gender Identity Toolbox, which suggests that gender is a socially and culturally constructed concept. Additionally, Flaherty pointed out Bill Gates's relationship with convicted sex offender Jeffrey Epstein, a connection that had been reported by the Wall Street Journal just two days before the meeting.
As Flaherty continued his presentation, Buffett intervened by cutting off Flaherty's microphone and ordering security to remove him from the venue. Subsequently, an Omaha Police officer arrested Flaherty on the spot. This event marked a significant moment as, according to Flaherty, “The silencing and arrest of a shareholder who was speaking in favor of a shareholder proposal has never before occurred at an annual meeting of a public company in the United States.”
NLPC Counsel Paul Kamenar stated, “We look forward to having our day in court to hold Mr. Buffett and Berkshire Hathaway accountable for their actions.” The federal court is expected to rule on Berkshire's motion to dismiss in the coming weeks.
The implications of this lawsuit are profound, touching on issues of corporate governance, shareholder rights, and the broader ethical responsibilities of corporate leaders. If the court rules in favor of the NLPC, it could set a precedent for how shareholder proposals and criticisms are handled during corporate meetings, potentially influencing corporate governance practices across the United States.
