Koch Brothers, Cato Institute Settlement Announced (With Very Few Details)

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National Journal and the Washington Post report that a settlement has been reached in the battle between libertarian billionaire philanthropists Charles and David Koch and the Cato Institute. (Full disclosure: David Koch sits on the board of Reason Foundation, the nonprofit that publishes this website.)

From NJ: 

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….

The settlement involves an agreement to dissolve the shareholder agreement. In addition, Crane is expected to retire under a deal that allows him to select his successor, though the Koch brothers could veto the choice.

The WashPost adds:

Details of the settlement outlined in the National Journal report could not be confirmed because Cato declined to comment until the staff has been briefed on the matter, which will occur Monday.

More as it develops and is made known.

Past posts on the controversy here.

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  1. Sounds to me like Crane gave up the most (by far?) in this settlement, although I’m not sure what the Kochs gave up by dissolving the shareholder agreement.

    And let’s be clear: if the Kochs can veto Crane’s replacement, what the settlement really does is allow Crane to propose potential replacements to the Kochs, not select his replacement.

    1. It always sounded to me like the Kochs had the upper hand, legally speaking. Not that surprising, since they were the moneybags for so long.

      Interesting to see who the successor will be and whether this means any changes at Cato. I certainly hope that it won’t mean, as asserted by Crane and his allies, a massive lurch to the right. We need a libertarian think-tank, not another rubber-stamping institution for the GOP.

  2. Cato will be cleaned out and be replaced with loyal party members.

  3. OT:

    While checking up on the latest from the Sandusky trial, I was reminded of a question a Christian apologist posed to an atheist at a debate I attended.

    “If aliens arrived and demanded that you raped 1,000 young girls or face the destruction of the earth, would you do it?”

    …I think I’ve stumbled upon a air-tight defense Sandusky could’ve used.

    1. What if God demanded that you kill your son, Mr. Christian apologist? Would you do it?

      1. Oh, the apologist was truly creepy.

        I think I remember the question being phrased as “Would you be up to the challenge of raping 1,000 girls?” to which the atheist responded “No, would you?”, after which he laughed at the absurdity of attempting such a task.

        Then, the apologist jumped in an said something like, “You see how he makes a tasteless joke about such a horrible crime?!”

    2. Lifeboat ethicists should be set adrift in one.

  4. Can someone please explain to me why the Kochs are supporting Big Government republicans like Romney, and not Gary Johnson? Are they hoping that if Rommney gets elected that Koch Industries will receive a huge government payoff?

    1. In conjunction with the Rand and Diebold Corporation, they plan to corner the market on inflatable monocles, therefore putting an end to the monopoly of less evils. Now if you want a pictogram of this exercise, I suggest the nearest looney-bin.

  5. Is there a Kochtoberfest? Cause it seems like a waste if there’s not.

    1. Yes there is. Although ironically enough, Jim Koch, the founder of Sam Adams, usually releases it in July.

  6. Chip Mellor from the Institute for Justice as the replacement maybe?

  7. OK it’s time for Julian Sanchez to quit . Don’t let the door hit ya in the ass on the way out.

  8. Isn’t that like agreeing with yourself?

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