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Text of Fourth Circuit Opinion: Fiduciary Considerations in Setting an ESOP's Stock Purchase Price (PDF)
U.S. Court of Appeals for the Fourth Circuit
Mar. 25, 2019 "[C]ourts look to the conduct of the trustee and whether it met its fiduciary obligations, not to whether the trustee arrived at a 'fair' value.... [A] trustee must satisfy both parts of the test to benefit from the adequate consideration exception. Assuming arguendo that the purchase was for 'fair market value,' we find no error in the district court's findings that Wilmington failed to prove that the share price was also 'the product of a determination made by the fiduciary in good faith.' " [Brundle v. Wilmington Trust, N.A., Nos. 17-1873, 17-2224, 17-2323, 17-2324, 18-1029 (4th Cir. Mar. 22, 2019)] MORE >> |
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