Lubrizol Class Action Lawsuit

A New York law firm has announced it is investigating the Board of Directors of Lubrizol Corporation for possible breaches of fiduciary duty in the wake of an announcement of the sale of the company to Berkshire Hathaway (Warren Buffett).

What on earth is the basis for this claim? The transaction became public, oh, about 20 seconds ago. The basis for the investigation appears to be that one analyst set the target price for $148. Another analyst predicted not to worry because the sky is falling. For any prediction, I could find an analyst.

Here is what we do know: the $135 a share purchase price represents a 28% premium over Lubrizol’s closing price on Friday; higher than anything Lubizol has ever sold for in its history.

I think that Lubrizol shareholders should give Warren Buffett and the Board of Directors of Lubrizol a hug instead of a lawsuit.

(Conflict note that has nothing to do with this post: I have an interest in Berkshire Hathaway.)
Post-Script Note: Apparently, the West Coast does not want to be left out. This law firm also wants to help suffering Lubrizol shareholders who only made 28% on their money today.

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