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Acme CFO, Employees Sue Berkshire Hathaway For Cutting Benefits

1 min read

A reader passes along this nugget from the Fort Worth Star-Telegram: Acme Brick’s CFO, an Acme employee and an Acme retiree have filed a class-action lawsuit against the brick company’s owner, Warren Buffett’s Berkshire-Hathaway, saying the company broke its promise not to cut retirement benefits to Acme employees.

From the Star-Telegram:

CFO Judy Hunter, who has fiduciary responsibility as a member of the retirement plan committees, joined with another employee and a retiree in lodging the suit following alleged “strong-arm tactics” by Berkshire Hathaway to reduce benefits.

Acme’s senior management on July 15 voted to make changes to the retirement plans urged by Buffett, Berkshire’s chief executive officer, and Marc Hamburg, its CFO. If the changes were not made, “Berkshire Hathaway intended to divest itself of Acme as a subsidiary,” the lawsuit says.

The lawsuit alleges that Berkshire cut contributions to the Acme 401(k) program and froze its pension in violation of the Employee Retirement Income Security Act.

A Berkshire executive wouldn’t comment on the lawsuit but told the Star-Telegram that Berkshire never promised to keep benefits the same.

You can access a PDF of the lawsuit here.

Acme employs more than 2,200 people across the country, including Clarksville, Fort Smith, Jonesboro, Malvern, North Little Rock and Springdale. Berkshire purchased Acme in 2000.

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