ESOP Trustee Evaded Fiduciary Duties by Delegating Valuation

BVLaw
Court Case Digests
March 31, 2017

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1794 Excavation Work
238910 Site Preparation Contractors
ESOP valuations
damages, discount rate, expert testimony, discounted cash flow (DCF), fair market value (FMV), multiple, projections, enterprise value (MVIC), market multiples, employee stock ownership plan (ESOP), adequate consideration, erisa, company specific risk, fiduciary duty, industry risk adjustment
Perez v. First Bankers Trust Services, Inc.
2017 U.S. Dist. LEXIS 52117
US
Federal Court
New Jersey
United States District Court
Prairie Capital (ESOP valuation); Dana Messina (plaintiff/DOL); Bradley Van Horn (defendant/trustee)
Shipp

Summary

Court finds ESOP trustee liable for causing plan to overpay; trustee “delegated” valuation to ESOP valuator without inquiring into valuation components, including projections, and without exploring “glaring” gaps (industry analysis) in valuation report.

See Also

Perez v. First Bankers Trust Services, Inc.

Full Text of Court Cases
March 31, 2017

Court finds ESOP trustee liable for causing plan to overpay; trustee “delegated” valuation to ESOP valuator without inquiring into valuation components, including projections, and without exploring “glaring” gaps (industry analysis) in valuation report.

ESOP Trustee Evaded Fiduciary Duties by Delegating Valuation

BVLaw Case Update
June 2017

Court finds ESOP trustee liable for causing plan to overpay; trustee “delegated” valuation to ESOP valuator without inquiring into valuation components, including projections, and without exploring “glaring” gaps (industry analysis) in valuation report.