Advertisement

Archive for Sunday, July 30, 2000

Brotherly spat pulls at Koch

July 30, 2000

Advertisement

Environmental problems aren't the only legal problems dogging Wichita-based Koch Industries. A family member also is keeping the heat on.

Round one: Bill Koch, one of the four sons of founder Fred Koch and the twin brother of executive vice president David Koch, sued the two brothers who run Koch Industries, unsuccessfully claiming in 1998 that they cheated him and other stockholders out of millions of dollars.

Another brother, Charles Koch, is the company's chairman and chief executive officer.

Round two: A whistleblower lawsuit filed by Bill Koch against the company led by his brothers ended in a jury verdict last December that the firm cheated on thousands of oil purchases.

Jurors found the company underreported the amount and quality of oil it bought from federal and Indian leases between 1985 and 1989. No final judgment has yet been entered, but the judge could impose a maximum fine of $214 million.

Commenting has been disabled for this item.