New updates to financial analysis decisions at BVLaw

Here are a sampling of cases where issues of business valuation factored in the final court decisions. As always, BVLaw Alert’s digests, and original court documents, are available for these and other breaking decisions.

Burton v. Mooneyham, 2012 Tenn. App. LEXIS 205 (March 28, 2012)

Divorce court discredits conflict between expert’s testimony at trial and then a rehearing, when he originally said the husband’s rental car business was worth a net $200,000 as of 2008 but then later changed his opinion to say it was worth nothing at that time.

Experts: Kurt Meyers

Judge: Bennett

State/Jurisdiction: Tennessee

Court: Court of Appeals

Type of case: marital dissolution

SIC code: 7514 Passenger Car Rental

In re El Paso Corp. Shareholders Litigation, 2012 Del. Ch. LEXIS (Feb. 29, 2012)

Despite a disturbing record of questionable valuations and conflicted financial advisors and principals, the Delaware Chancery Court declines to enjoin the billion-dollar merger of Kinder Morgan with El Paso.

Experts: Goldman Sachs, Morgan Stanley (defendants)

Judge: Strine

State/Jurisdiction: Delaware

Court: Court of Chancery

Type of case: dissenting shareholder

SIC code: 1311 Crude Petroleum and Natural Gas

DeFazio v. Hollister, Inc., 2012 U.S. Dist. LEXIS 9063 (April 6, 2012)

Federal district court finds that ESOP trustees breached their fiduciary duties by failing to determine whether permitting the company to repurchase plan stock at book value was “adequate consideration,” but dismissed the plaintiffs’ claims for lack of any expert testimony on damages or material harm to the plan.

Experts: John Calvin Korschot (plaintiffs); Roger Grabowski (defendants)

Judge:  Shubb

State/Jurisdiction: Federal/California

Court: U.S. District court

Type of case:  ESOP

SIC code:  3841 Surgical and Medical Instruments and Apparatus