Christopher v. Hanson
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.
Important Tax Court Reminder Regarding Small-Firm ESOP Compliance
Tax Court confirms disqualification of small private practice ESOP for failure to qualify with certain administrative regulations, including appraisal by an “independent” and “qualified” appraiser.
Did ESOP Fiduciary Breach Duties by Relying on Year-Old Appraisal?
ESOP administrator did not breach duty of care when relying on an appraisal that valued the company a year before its eventual liquidation and sale.
Hollen v. Commissioner of Internal Revenue
Tax Court confirms disqualification of small private practice ESOP for failure to qualify with certain administrative regulations, including appraisal by an “independent” and “qualified” appraiser.
McCabe v. Capital Mercury Apparel
ESOP administrator did not breach duty of care when relying on an appraisal that valued the company a year before its eventual liquidation and sale.
Bunch v. WR Grace Co.
ESOP participants allege that plan administrators have breached their fiduciary duties by relying on value other than market price in divesting plan of company stock.
Is Failure to Apply DLOM a Breach of ESOP Trustee’s Fiduciary Duty?
Court remands case for review of whether ESOP trustee breached its fiduciary duty by failing to apply a marketability discount to large, privately held company stock.
Armstrong v. LaSalle Bank National Ass’n
Court remands case for review of whether ESOP trustee breached its fiduciary duty by failing to apply a marketability discount to large, privately held company stock.
Failure to Conduct Reasonable Due Diligence Investigation Dooms ESOP Valuation
The issue in this ESOP case was whether or not the transaction that provided the ESOP with its initial stock interest in the company was a prohibited transaction and, if so, whether it qualified under the adequate consideration exception by ERISA.
Henry v. Champlain Enterprises, Inc. (II)
In this ESOP case the issue was the valuation of the business.In this ESOP case the issue was the valuation of the business.In this ESOP case the issue was the valuation of the business.
Motion to Exclude Banker Using DCF Method Denied
Participants in CommutAir’s Employee Stock Ownership Plan brought this ESOP litigation alleging numerous claims of breach of fiduciary duty by the trustee and others involved in the ESOP.
Henry v. Champlain Enterprises, Inc. (I)
In this case, a purchase for the ESOP was valued incorrectly, the IRS determining that the valuation did not take into consideration the lack of marketability due to the remaining shares ...