Koch Brothers and Cato Institute Finalize Settlement

The Cato Institute and billionaire donors Charles and David Koch have formally ended their legal rift with an agreement that revamps the libertarian think tank’s unusual governing structure, writes The New York Times.

Under the pact revealed last week and finalized Monday, the Koch brothers will drop lawsuits they brought in a bid to gain control of the nonprofit policy group, which Charles Koch co-founded in 1977. Longtime Cato head Ed Crane, who fought the takeover bid, claiming that the Kochs wanted to use the nonpartisan institute to pursue their conservative political agenda, will step down.

The deal also dissolves a shareholder agreement through which the Kochs held two of four controlling stakes in Cato. The institute will now be governed by a 12-seat board, including David Koch and three other directors named by the brothers.

“I think both sides got what they wanted. I’m happy,” said Mr. Crane. “This was the tradeoff: Cato’s independence for new leadership.”

John Allison, former head of BB&T, a North Carolina-based bank, will take over as Cato’s chief executive.