Buffett’s NCAA Bet Prompts Yahoo Lawsuit

Dan Gilbert, Quicken Loans founder, and Warren Buffett said last month that they would pay $1 billion to the person who picked the perfect NCAA March Madness bracket. It looks like Yahoo actually had this idea first.

Yahoo is currently being sued by a Dallas-based sweepstakes company. They claim that Yahoo owes them $4.4 million because they backed out of a similar contest. The contest would have paid $1 billion for the perfect bracket, just like the Buffett and Gilbert contest. We learned this from Fortune.

According to last week’s lawsuit, Yahoo penned a deal with SCA Promotions late at the end of 2013, but then canceled the contest not long after Buffett in Gilbert made the announcement for theirs.

Warren Buffett and Berkshire Hathaway are not named in the lawsuit.

Fortune reported previously that Warren Buffett first provided the idea to Yahoo, but they turned him down. The lawsuit does call into question whether or not Buffett actually had the idea first.

Berkshire Hathaway is going to ensure the $1 billion prize. Any qualified participants will share in the winnings as long as they predict the winner of every game in the NCAA men’s college basketball tournament. It begins on March 18.

Fortune questioned Berkshire Hathaway, but they did not comment. Yahoo also declined to comment.