Cato: Kochs Can’t Take Control Because of ‘Unclean Hands’; Second Suit Filed
The nasty fight over control of one of the country’s best-known political think tanks is growing.
The Cato Institute, a libertarian think tank, has filed an answer to a lawsuit filed by David and Charles Koch in Johnson County. Their lawsuit seeks to force Cato to offer the shares of a deceased director to the politically-active billionaires instead of the director’s widow.
In its answer Cato says the Kochs should be barred from their takeover attempt.
“Plaintiffs seek to forcefully and improperly create a circumstance in which they attempt to gain control over Cato when the language of the Shareholders Agreement relied upon by Plaintiffs does not permit the expansive relief requested,” the answer says.
William Niskanen, a Cato director, died last year. Cato wants his shares in the institute to go to his widow, but the Kochs say they must be offered the shares first. If they obtain the shares they would effectively control Cato.