No Independent Appraiser Sought: ESOP Fiduciaries Clearly Liable for Breach

Business Valuation Update BVLaw
Legal and Court Case Update
July 16, 1998
2436 Softwood Veneer and Plywood
321212 Softwood Veneer and Plywood Manufacturing
breach of fiduciary duty
breach of fiduciary duty, fair market value (FMV), burden of proof, employee stock ownership plan (ESOP), adequate consideration, erisa

Montgomery v. Aetna Plywood
39 F. Supp. 2d 915,1998 U.S. Dist. LEXIS 20618
Federal Court
United States District Court
Timothy Fagan (for defendant) Brad Akason (for plaintiff)
Hart, William


This case involves the sale of the controlling block of stock of Aetna Plywood Inc. held by the company's employee stock ownership plan (ESOP) to the company in a leveraged buyout.

See Also

Montgomery v. Aetna Plywood

At issue is the valuation of ESOP shares at the time of a stock transaction.