When cash never hits the books, can an accounting still deliver meaningful relief? A recent decision offers answers—and warnings.
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Can an Equitable Accounting Find the Missing Cash?
A Leaf Through a Busy November in New York LLC Litigation
November was a whirlwind month for New York LLC litigation. It featured disputes over how to wind up a judicially dissolved LLC, a bitter intra-family emergency indemnification/advancement injunction, and the finale of a decade-long battle over the enforceability of a partially baked operating agreement. Some of these recent cases add clarity to the growing body of New York LLC caselaw. Others add confusion. But all add precedential footholds for future arguments in disputes between members of New York LLCs. Members and their counsel take note.Continue Reading A Leaf Through a Busy November in New York LLC Litigation
Can Post-Valuation Date Historical Performance Trump Pre-Valuation Date Financial Projections?
Under traditional principles of business valuation, courts are generally expected to eschew metrics post-dating the valuation date. But often, litigants hoping to either increase or decrease an entity’s valuation ask courts to consider post-valuation date events or financial performance as affirmatory or disaffirmatory of financial projections or assumptions made before or as of the valuation date. Sometimes, litigants succeed in that endeavor. Read about a recent example in this week’s New York Business Divorce.
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Bookkeeper Liability? It’s a Real Thing
For burned business owners, the list of potential litigation targets just got a little bigger. Bookkeepers are now in the crosshairs. Read about it in this week’s New York Business Divorce.
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When Law Firms Break Bad: The Valuation Battle Over Contingency Fees and Crypto Tokens
A law firm with high-upside contingency-fee cases that accepted payment in cryptocurrency tokens might be one of the most difficult companies to value. This week’s post explores a recent SDNY decision on such a company.
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Business Divorce and Accountant Liability
In this week’s New York Business Divorce, learn how a son’s betrayal of his own mother while managing the famous Stardust Diner ensnared an accounting firm in claims of malpractice and aiding and abetting fraud for declining to inform the mother of the son’s financial misdeeds.
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Strength in Numbers: The Resurgence of the Accounting Claim in Business Divorce Litigation
The equitable accounting claim in business disputes has experienced a resurgence. This week’s post explores the recent developments reinforcing the potency of this once-fading legal remedy.
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Misappropriated Watering Hole Becomes Money Judgment Sinkhole
In this week’s New York Business Divorce, read about an unusually brazen case of misappropriation of corporate opportunity culminating in a hefty judgment against the perpetrators, including punitive damages and an accounting surcharge.
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Challenges to Expert Appraisers in Valuation Proceedings
In business divorce litigation, the expert appraisers often are the key witnesses. A recent PwC Study analyzing the success of challenges to expert appraisers inspires a deeper dive into some keystone cases where courts excluded the expert testimony of an appraiser.
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$30 Million Appraisal of Plumbing Fixtures “Marketeer” Goes Down the Drain at Fair Value Hearing
Was the company worth $30 million or $6 million? That was the question recently decided by Justice Vito M. DeStefano who presided over a 7-day fair-value appraisal hearing in Magarik v. Kraus USA, Inc. This week’s New York Business Divorce has the story.
Continue Reading $30 Million Appraisal of Plumbing Fixtures “Marketeer” Goes Down the Drain at Fair Value Hearing