Perez v. Bruister (I)
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Adjusting Appraisals, Court Estimates ESOP Target’s Value
After determining defendants breached fiduciary ERISA duties in ESOP transaction, the federal court adjusts two nearly contemporaneous valuations of the target company to arrive at a “reasonable estimate” of the target’s fair market value ...
Chesemore v. Alliance Holdings, Inc. (II)
After determining defendants breached fiduciary ERISA duties in ESOP transaction, the federal court adjusts two nearly contemporaneous valuations of the target company to arrive at a “reasonable estimate” of the target’s fair market value and the plaintif ...
Management Buyout Fraught With Flawed ESOP Valuations
Federal district court makes extensive finding regarding breaches of fiduciary duties for ESOP trustees that caused company to enter heavily leveraged buyout despite falling forecasts and flawed valuations marred by manager conflicts of interest.
Appraisers Dodge ERISA but Not Malpractice Claims in Valuing ESOP
Court finds all ERISA claims against the company, ESOP plan fiduciaries, and appraisal firm for fraud and breach of fiduciary duty are barred by the statute of limitations, but permits state law negligence/malpractice claims to proceed against the apprais ...
Chesemore v. Alliance Holdings, Inc. (I)
: Federal district court makes extensive finding regarding breaches of fiduciary duties for ESOP trustees that caused company to enter heavily leveraged buyout despite falling forecasts and flawed valuations marred by manager conflicts of interest.
Court ‘Surprised’ by Lack of Expert to Prove Losses to Employee Benefit Plan
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 an ...
Enneking v. Schmidt Builders Supply Inc.
Court finds all ERISA claims against the company, ESOP plan fiduciaries, and appraisal firm for fraud and breach of fiduciary duty are barred by the statute of limitations, but permits state law negligence/malpractice claims to proceed against the apprais ...
DeFazio v. Hollister, Inc.
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 an ...
Was ESOP Appraiser ‘Strong-Armed’ by Owner/Trustee?
Court denies summary judgment motion, finding that the owner of an ESOP company ‘”strong-armed” its ESOP appraiser to provide a target value for repurchasing/redeeming his shares.
ESOP Expert Attacked for Using ‘Alternative Investment Method’
Court upholds the alternative investment method ESOP expert used to support claims that plan trustee breached its fiduciary duty by imprudently investing in stocks it knew to be artificially inflated by accounting improprieties.
Harris v. Koenig
Court upholds the alternative investment method used by ESOP expert to support claims that plan trustee breached its fiduciary duty by imprudently investing in stocks it knew to be artificially inflated by accounting improprieties.