Tags: Cato | Koch | lawsuit | settled

Cato, Koch Brothers Settle Suits Over Control of Think Tank

Monday, 25 Jun 2012 05:19 PM


  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
The Cato Institute settled two lawsuits brought by Charles and David Koch vying for influence over the Washington-based free-markets advocacy group.

The two sides disclosed the accord, which includes the replacement of retiring Cato Chief Executive Officer Edward H. Crane with former BB&T Corp. chairman John A. Allison, in a joint statement issued today.

Cato backed litigation challenging President Barack Obama’s 2010 health-care reform legislation. The brothers, principals of the closely held refining and chemical company Koch Industries Inc., have been active in Republican Party fundraising. The U.S. Supreme Court didn’t rule on the health-care law today, pushing the decision to June 28.

“For a majority of Cato’s directors, the agreement confirms Cato’s independence and ensures that Cato is not viewed as controlled by the Kochs,” both sides said in the statement.

“For Charles Koch and David Koch, the agreement helps ensure that Cato will be a principled organization that is effective in advancing a free society,” Cato and the Kochs said.

Charles Koch, a Cato co-founder, and his brother sued the organization, Crane and the widow of Chairman Emeritus William Niskanen in state court in Kansas in March, seeking enforcement of an agreement that they said required Niskanen’s estate to offer his stock back to the institute and then to its surviving shareholders -- the brothers and Crane.

Voting Power

In an April lawsuit, the Kochs accused Chairman Robert Levy, Crane and seven other directors of improperly adding four directors to Cato’s board to dilute the brothers’ voting power. Before Niskanen’s death in October 2011, the institute had four shareholders -- Niskanen, Crane and the Koch brothers.

Crane, in a March statement, said the brothers were trying by “hostile takeover” to transform the organization he founded with Charles Koch in 1977 from one that is non-partisan to one that is overtly political.

Under the terms of the agreement, Cato will cease to be a stockholder corporation and instead will be governed by the members, who will double as institute directors and who will elect their own successors, the parties said.

The initial Cato board will include 12 long-term directors including David Koch, three other Koch designees and Allison, who holds the option to nominate one or two additional directors.

Crane, Charles Koch and Niskanen’s widow, Kathryn Washburn, won’t be on the board. Crane will step down from his post after a transition period of up to six months, according to the statement, after which he will work as a consultant on fundraising and other matters.

Koch Industries based in Wichita, Kansas.


© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Google Working on Super-fast 'Quantum' Computer Chip

Tuesday, 02 Sep 2014 22:08 PM

Google on Tuesday said it is working on a super-fast quantum computer chip as part a vision to one day have machines t . . .

US, European Lawmakers to Discuss NSA, World Hotspots in DC

Tuesday, 02 Sep 2014 21:48 PM

Members of Congress and European parliaments will discuss international "hotspots" such as Iraq, Ukraine and Gaza, as we . . .

Pipeline Foes Condemn Neb. Congressman's Mock Playlist

Tuesday, 02 Sep 2014 19:28 PM

Nebraska Congressman Lee Terry is duking it out with oil pipeline fighters again, this time over a mock playlist Terry's . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved