Indiana Supreme Court Issues Key Ruling on Discounts in Compelled Buybacks

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

Hartman v. BigInch Fabricators & Construction Holding Co., Inc. Last year, in a compelled buyout, the Court of Appeals sided with the departing minority shareholder when it found discounts did not apply in a closed-market sale. In a freshly minted decision, the...

Expert Identifies Only Viable Method to Value Stock in ‘Severely Distressed’ Private Company

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

Lucero v. United States The taxpayer sued the federal government for a refund, arguing she had overpaid income taxes on stock she had received as part of settling a lawsuit against her former employer. She initially relied on the value in the settlement agreement but...

Plaintiff’s Proposed Class Action Alleging Overpayment Survives Motion to Dismiss

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

Lysengen v. Argent Trust Co. This proposed ESOP class action featured familiar claims against the trustee and several individual defendants. In her complaint, the plaintiff alleged the trustee violated ERISA by allowing the plan to overpay for company stock and by...

Key Ruling From Tennessee Appeals Court Finds Tax Affecting ‘Relevant’ to Fair Value Determination

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

Raley v. Brinkman In a Tennessee buyout dispute involving a limited liability corporation organized as an S-corporation, the parties disagreed over whether it was appropriate to tax affect in calculating the fair value of the terminated member’s interest. The trial...

Proper Damages Measure Is Lost Profits Calculation, Not DCF-Based Loss Analysis

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

Precision Kidd Acquisition, LLC v. Pass This Pennsylvania appellate court decision (unpublished) includes an informative discussion of how to measure damages arising out of a merger in which the seller allegedly failed to inform the buyer during negotiations that one...

Indiana and South Carolina Courts Issue Key Discount Rulings

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

The Indiana Court of Appeals and the South Carolina Supreme Court recently issued noteworthy rulings on the appropriateness of discounts in valuing minority interests. The contexts in which the issue arose were different, but, in both cases, there was a compelled sale...