OMAHA, Neb. - Warren Buffett's Berkshire Hathaway has filed a counter lawsuit against the Haslam family, accusing them of attempting to bribe executives at the Pilot truck stop chain. The billionaire Haslam family reportedly offered millions of dollars to at least 15 executives in an effort to inflate the company's profits. This move was allegedly aimed at forcing Berkshire Hathaway to pay a higher price for the family's remaining 20% stake in the company.

The allegations in Berkshire's counter lawsuit follow accusations made by the Haslam family, which includes Cleveland Browns owner Jimmy Haslam and former Tennessee governor Bill Haslam. They had claimed that Berkshire was attempting to understate Pilot's earnings by making changes to its accounting practices.

A hearing for Berkshire's counter lawsuit is scheduled for Thursday, and representatives for the Haslams have not yet responded to requests for comment.

According to court documents, Berkshire Hathaway became aware of the Haslams' alleged attempts to bribe executives earlier this month. The revelation came from a senior executive who was promised a bonus and disclosed the information to the current Pilot CEO, who was appointed by Berkshire after it acquired a majority stake in the company earlier this year.

The court filing reveals that Jimmy Haslam, personally offered generous bonuses to the executives, which far exceeded their annual salaries. The bonuses were contingent upon the price the family received for its remaining stake in the company. While the number of employees who accepted the offer has been redacted, Berkshire states that Haslam made the offer to approximately 15 employees during a country club dinner in Knoxville, Tennessee, in March. Additionally, he repeated this offer to at least four other high-level executives. In April, Pilot's former CEO also extended the offer to at least 10 other executives, according to Berkshire's filing.

The total amount of money at stake remains unclear, as some figures in the lawsuits have been redacted. However, the Haslams had valued their 20% stake in Pilot at $3.2 billion before Berkshire's accounting changes.

The price Berkshire will ultimately pay for the Haslams' stake is determined by a formula based on Pilot's reported earnings, which Buffett and the family had agreed upon in 2017. Initially, Berkshire purchased 38.6% of Pilot for $2.758 billion back in 2017. It further increased its stake to 80% this year by investing an additional $8.2 billion. Buffett had mentioned earlier this year that he would have preferred to buy the entire company in 2017 when the price was more favorable, but the Haslams were unwilling to sell their entire stake at that time.

Pilot, the largest network of truck stops in the United States with over 850 locations and approximately 30,000 employees, has contributed significantly to Berkshire Hathaway's revenue and profits this year.

The Haslams argue that Berkshire's decision to implement "pushdown accounting" this year led to higher depreciation and amortization costs for Pilot, resulting in lower net income. However, they were outvoted on this change in accounting practices during Pilot board meetings.

Berkshire contends that it is impossible to determine the extent to which Pilot's profits may have been inflated this year due to decisions made by executives who were promised bonuses. While some recommendations to boost short-term profits, such as selling off assets or abandoning valuable hedge positions, were rejected, Berkshire believes that other decisions likely went undetected.

Berkshire is seeking a January trial date to have its claims evaluated alongside the Haslams' initial lawsuit. This would help determine the proper valuation of Pilot and whether the Haslams should be permitted to sell their stake in 2024, given the uncertainties surrounding the company's 2023 earnings.

Apart from its ownership of the truck stop chain, Berkshire Hathaway boasts a diverse portfolio of businesses including Geico insurance, BNSF railroad, major utilities, and holdings in renowned companies such as Apple, Coca-Cola, American Express, and Bank of America, among others.