Buffett's $1B NCAA bet prompts lawsuit against Yahoo

Warren Buffett, chairman of the board and CEO of Berkshire Hathaway
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Last month, Warren Buffett and Dan Gilbert, founder of Quicken Loans, said they would pay $1 billion to anyone who could pick the perfect NCAA March Madness bracket, but it appears that Yahoo may have had the idea first.

A Dallas-based sweepstakes company is claiming that it is owed $4.4 million by Yahoo for backing out of a similar contest that would have paid $1 billion for a perfect bracket as well, Fortune reported on Tuesday.

According to a lawsuit filed last week, Yahoo signed a deal with SCA Promotions late last year, but canceled the contest shortly after Gilbert and Buffett announced theirs.

Berkshire Hathaway and Buffett are not named in the suit.

Fortune previously reported that Buffett presented Yahoo with the idea first, but was turned down. The lawsuit calls into question whether Buffett really had the idea first.

Berkshire will be insuring the $1 billion prize. It would be shared by any qualified contest participant who predicts the winners of every game in the men's college basketball tournament, which is set to begin on March 18.

Berkshire did not return Fortune's request for a comment. Yahoo declined to comment.

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