Defense expert testimony supports ESOP valuation and fairness opinions
A recent ESOP decision involving allegations of breach of fiduciary duty and engaging in a prohibited transaction turned on whether the ESOP trustee’s financial advisor had performed proper due diligence and issued defensible fairness and valuation analyses.
Persuasive’ Defense Expert Testimony Defeats ESOP Overpayment Claims
Court says defense expert opinion provides “credible and persuasive” support for court’s conclusion that ESOP financial advisor produced sound fairness and valuation opinions prior to contested transaction; there was no overpayment for stock at issue.
Fish v. GreatBanc Trust Co.
Court says defense expert opinion provides “credible and persuasive” support for court’s conclusion that ESOP financial advisor produced sound fairness and valuation opinions prior to contested transaction; there was no overpayment for stock at issue.
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 ...
Analysts Not Required to Predict the Future—Only to Probe Present Facts
In assessing fair value and adequate consideration of ESOP transaction, court considers whether appraiser should have reasonable foreseen future events affecting stock and company value.
Keach v. U.S. Trust Co.
In assessing fair value and adequate consideration of ESOP transaction, Court considers whether appraiser should have reasonable foreseen future events effecting stock and company value.
No Evidence That Board's Financial Advisor Was Fiduciary to ESOP
This was a motion for summary judgment in connection with an action for breach of fiduciary duty to the employee stock ownership plan (ESOP) of F&G company.
Appraisal Firm Not Liable for Professional Malpractice; ESOP Trustee Must Prove Justified Reliance
This trial court matter arose as a result of prior litigation in which the trustee of the Kroy ESOP was found liable for breach of its fiduciary duty.
Bank One Arizona v. Benchmark Valuation Consultants
At issue is the claim of professional malpractice.
Appraisal Firm Not Liable for Professional Malpractice ESOP Trustee Must Prove Justified Reliance
This trial court matter arose as a result of prior litigation in which the trustee of the Kroy ESOP was found liable for breach of its fiduciary duty.
Owen v. SoundView Financial Group
At issue is whether or not the defendants' judments should be protected by registration in the area where he lives and works.
Former Trustee's Challenge of Valuation Method Fails
Plaintiff was an employee and director of the defendant SoundView Financial Group and was also a participant in and trustee of the company's 401(k) and profit-sharing plan.
Prudent Investor Method Used to Value Unfunded Pension Benefits Claim
CF & I Fabricators of Utah Inc. filed for Chapter 11 bankruptcy and Pension Benefits Guaranty Corp. seeks, among other things, payment for unfunded benefit liabilities accruing because of the lack of assets in the benefit plan.
Employees Get Nearly $9 Million for Value of 'Phantom Stock'
Plaintiffs were highly compensated executives who have sued their former employer and its owner for ERISA benefits allegedly due them under a phantom stock plan.
Pension Benefits Guaranty Corp. v. CF&I Fabricators (In re: CF&I Fabricators)
Parties disagree as to the method that should be employed to determine the present value of future payments because of two ERISA provisions.
Price Paid PA&E Stockholders
This is the latest installment in the lengthy saga of Howard v. Shay , a case of ESOP participants suing for undervaluation on termination of the ESOP and sale of its 38.6% stock interest to a trust controlled by the controlling stockholder.
Emmenegger v. Bull Moose Tube Company
The plaintiffs claim that they were discharged in retaliation for exercising their rights under a phantom stock plan.
Montgomery v. Aetna Plywood
At issue is the valuation of ESOP shares at the time of a stock transaction.
No Independent Appraiser Sought: ESOP Fiduciaries Clearly Liable for Breach
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.
Howard v. Shay (remanded to District Court)
At issue is breach of ESOP fiduciary duties.
ESOP conference addresses whether appraiser may be a fiduciary
At The ESOP Association's Valuation Advisory Committee meeting May 14, Jared Kaplan , a well-known ESOP attorney with McDermott, Will & Emery , said, "If you are a financial advisor to a fiduc ...
9th Circuit Reverses PA&E District Court Decision
Pacific Architect and Engineers Inc. (PA&E ) ESOP sold its 40% stock interest to a family trust established by the stockholder, Edward Shay, who owned the other 60%.
Howard v. Shay (US Appeals Court)
At issue is the valuation of a real estate holding company.
Control Stockholder Held Liable in Failed ESOP
Effective in December 1996, Gary Eyler, the controlling stockholder of Continental Training Services (CTS), sold 689,655 shares of CTS stock (about 14% of the outstanding shares) to a newly formed ESOP for $14.50 per share, or about $10 million, financed by a loan from American Fletcher National Bank.