The U.S. District Court (Arizona) Accepts the Valuation of the DOL’s Expert in Finding the Defendants Breached Their Fiduciary Duties (ESOP)

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Court Case Digests
August 15, 2024

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ESOP valuations
control premium, breach of fiduciary duty, cash flow, discount, discounted cash flow (DCF), stock, breach of ERISA fiduciary obligations, interest rate, employment agreement, employee stock ownership plan (ESOP), premium, comparable, purchase price, equity value, warrants, lack of control, Department of Labor, fair market value, enterprise
Julie A Su v. Bensen
2024 U.S. Dist. LEXIS 145404
US
Federal Court
Arizona
United States District Court
Dr. Paul C. Wazzan, Jeffrey S. Tarbell, Edward A. Wilusz
Roslyn O. Silver

Summary

This case was one in a line of suits the Department of Labor brought against fiduciaries, including trustees and owners of businesses, in ESOP transactions challenging the value of the business the owners/defendants sold. Once again, the DOL won this case choosing the value their expert presented, which was substantially below the purchase price the ESOP paid for the business.

See Also

Julie A Su v. Bensen

Full Text of Court Cases
August 15, 2024

This case was one in a line of suits the Department of Labor brought against fiduciaries, including trustees and owners of businesses, in ESOP transactions challenging the value of the business the owners/defendants sold. Once again, the DOL won this case choosing the value their expert presented, which was substantially below the purchase price the ESOP paid for the business.

This article also appears in:
Business Valuation UpdateVol. 30 No. 10