Stay informed on the latest legal developments impacting employee ownership with timely and concise summaries of key cases and rulings. Learn more about this digest »
Corey Rosen
In Larson v. Commissioner, T.C. Memo 2022-3, No. 15809-11, (U.S. Tax Court, Feb. 2, 2022), the tax court rejected an appeal by the plaintiff over an assessment of several million dollars in taxation for his nominally restricted stock.
Corey Rosen
In Ahrendsen, et al. v. Prudent Fiduciary Services, LLC, et al., No. 2:21-cv-02157 (E.D., PA, Feb. 2, 2022), a district court allowed an ESOP valuation case against the sellers and the trustee on the case to proceed to trial.
Corey Rosen
In Revenue Procedure 2021-4, the IRS added ESOPs to Form 5307, the form used to submit letter-of- determination requests.
Corey Rosen
In Walsh v. Reliance Trust et. Al., No. 17-CV-04540 (D.C. Minn. Jan. 5, 2022), Reliance Trust and the directors of Kurt Manufacturing agreed on a $9.4 million settlement in an ESOP valuation case. Reliance will pay $8.4 million to the company’s ESOP and the directors and officers of Kurt Manufacturing will pay $989,000.
Corey Rosen
Fiduciaries of the Mohawk Hospital Equipment Inc. ESOP will have to pay $431,000 over claims of excessive compensation paid to themselves and family members.
Corey Rosen
In Zavala v. Kruse- Western, Inc., No. 1:19-cv-00239- DAD-SKO (E.D. Cal., Dec. 13, 2021), a district court ruled that GreatBanc Trust and the board of Kruse-Western Inc. must defend themselves in a lawsuit over the 90% drop in stock price following a $244 million ESOP buyout.
Corey Rosen
In GunBroker.com, LLC v. Tenor Capital Partners, LLC, no. 1:2020cv00613 (N.D. GA., Nov. 3, 2021), a Georgia court provided mixed rulings on whether Tenor Capital was required to be a registered investment advisor under the Federal Investment Advisors Act or Georgia state law.
Corey Rosen
In Walsh v. Vinoskey, No. 20-1252 (4th Cir., Dec. 7, 2021), the 4th Circuit reduced a $6.5 million settlement between Adam Vinoskey, the former owner of Sentry Equipment & Erectors Inc., and the Department of Labor, by $4.2 million.
Corey Rosen
In Secretary of Labor v. Potts, 2021 No. 20-3856, (6th Cir., Nov. 24, 2021, unpublished) a circuit court ruled that a DOL lawsuit against an ESOP trustee in a valuation case is not covered by the company’s professional liability insurance policy because the policy expressly excluded ESOP issues from coverage.
Corey Rosen
In Horan et al v. Goal Structured Solutions, Inc. Employee Stock Ownership Plan et al, 3:20-cv-02290 (S.D., Calif. Nov. 2, 2021) a district court said that plaintiffs could proceed with a claim for equitable relief.
