Rosenthal v. Erber
In a New York business dispute, the court analyzed valuation reports from both sides and then determined the fair value of the entity and of the selling shareholder’s 50% interest. Offering criticisms of both reports, she then started with the report of the selling shareholder’s report and discarded the report of the buying shareholder, which had some evidentiary issues as to back rent due and other issues.
Fair Value Decision Analyzes Valuation Issues
In a New York business dispute, the court analyzed valuation reports from both sides and then determined the fair value of the entity and of the selling shareholder’s 50% interest. Offering criticisms of both reports, she then started with the report of the selling shareholder’s report and discarded the report of the buying shareholder, which had some evidentiary issues as to back rent due and other issues.
Schmidt v. Schmidt
Appeals court overturns valuation, finding trial court mistakenly accepted valuation that assumed and required noncompete from owner spouse without expert’s calculating value assuming no noncompete; valuation still includes personal goodwill component that must be excised, appeals court says.
Value of CEO Noncompete Helps Court Determine Fairness of Class-Action Settlement
Court considers value of CEO noncompete to determine fairness of class-action settlement.
In Re Luxottica Group, S.P.A. Securities Litigation
Court considers value of CEO non-compete to determine fairness of class-action settlement.