Minority Interest Discount Considered

Business Valuation Update BVLaw
Legal and Court Case Update
April 5, 2004
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breach of fiduciary duty

Adelson v. Adelson
2004 Mass. App. LEXIS 357
US
State Court
Massachusetts
Court of Appeals
Bruce A. Singal, Franklin H. Levy, Martha Born
Perretta

Summary

The Massachusetts Court of Appeals considered whether the inclusion of discounts in the purchase price a majority shareholder paid to a minority shareholder for his stock was material information that should have been disclosed to the minority shareholder.

See Also

Adelson v. Adelson

Father purchases stock back from his son five months prior to liquidating the company's main asset, making it possible to settle notes with stockholders for higher value.