Berkshire Hathaway Fined for Reporting Error
Washington, DC, Aug. 21, 2014 -- Berkshire Hathaway, parent company of Shaw Industries, will pay an $896,000 civil penalty for a financial reporting error.
The company failed to notify antitrust regulators when it converted notes of building products company USG into stock shares in December 2013, a move that gave Berkshire about 28% of USG voting securities, valued at more than $950 million.
In a press release, CEO Warren Buffett said "we made a mistake," after Berkshire was effectively forced to convert the notes.
A 1976 law imposes notification and waiting-period requirements for transactions of a certain size so they can undergo premerger antitrust review.