The legal battle between the Koch brothers and Ed Crane over the future of the Cato Institute may or may not finally be finished. Details of the supposed settlement have not yet been made clear, but here is what has been reported up to this point:
“Looks like we’ve come to an accommodation with the Koch brothers,” Cato founder and President Ed Crane said in a Tuesday e-mail to employees.
Crane said that staffers will be briefed on Monday on the “settlement” by Cato Chairman Bob Levy and John Allison, a prominent libertarian and former BB&T chief executive officer, who mediated the negotiations. “It will be great to get all this unpleasantness behind us,” Crane said.
In a follow up email to staff, Crane cautioned that negotiations are ongoing.
The deal will settle a lawsuit that the Koch brothers filed in February over shares that determine control of Cato. It results from the original division of shares between the two Koch brothers, Crane, and the late Cato Chairman William Niskanen.
After Niskanen died of stroke complications in October, the Koch brothers claimed that a founding shareholder agreement gave them the option to buy his shares. Crane held that they should go to Niskanen’s widow, which would leave him in effective control of the organization.