In Controversial Move, Tax Court Tackles ‘Double Inclusion’ Problem 

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Estate of Powell v. Commissioner  Given the unfavorable optics of a recent case, the Tax Court’s finding that the value of assets transferred from the decedent to a family limited partnership was includible in the value of the decedent’s gross estate is not...

Balance Your Right to Monitor Communications with Employees’ Privacy Rights

by Royer Advisors | Dec 11, 2024 | Court Rulings

Have you considered monitoring your employees’ communications at work? It’s a delicate balance to create a policy to monitor employees activities and protect your company without violating employees’ legal privacy protections. But you may have legitimate reasons for...

Expert’s Damages Opinion Specific Enough for Class Certification Stage

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

Willis v. Big Lots, Inc. In what is becoming a common practice, the defendants in a potential securities class action filed a Daubert challenge to exclude financial expert testimony at the class certification stage. Although courts are divided whether Daubert should...

Appreciation Case Highlights Contribution by Non-Owner Spouse

by Royer Advisors | Dec 11, 2024 | Court Rulings, Divorce Litigation, Valuations

Allison v. Allison A Michigan divorce case that centered on the non-owner spouse’s right to the appreciation in value of allegedly separate property is informative as it shows what factors the court considers for its active/passive analysis. However, the size of the...

Chancery’s DCF Upends Appraisal Arbitrage Strategy

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

In re Appraisal of SWS Group, Inc. Only days after deferring to the merger price in the PetSmart case, the Delaware Court of Chancery opted for the discounted cash flow analysis in the instant appraisal proceeding. This case, which featured a bank holding company,...

Compromised Projections Compel Chancery to ‘Defer’ to Deal Price

by Royer Advisors | Dec 11, 2024 | Court Rulings, Valuations

In re PetSmart, Inc. A statutory appraisal decision from the Delaware Court of Chancery offered a familiar valuation contest between the discounted cash flow analysis and the merger price. Shareholders opposed to the going-private merger of PetSmart claimed that their...