Berkshire Hathaway chair Warren Buffett proved once again his foresight for businesses when he sold over a million shares of DaVita a day before the dialysis service provider was sued.
Buffett sold 1,145,938 shares of DaVita worth £126.23 million ($168.57 million) on 8th May
Buffett made the stock trade a day before the company was hit by a lawsuit filed by the Pennsylvania-based United Food and Commercial Workers Local 1776 on 9th May. The benefits fund pays for dialysis services for its members.
According to the lawsuit, DaVita illegally ‘carved up’ regions in the US to avoid competition. The plaintiffs also accused the company of engaging in parallel price hikes that were higher relative to rivals since 2021 and ‘not adequately explained by market forces.’
DaVita has denied any wrongdoing in both lawsuits, highlighting that the allegations in the most recent one are ‘baseless.’