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Ninth Circuit Joins Fourth Circuit in Holding That Equitable Estoppel Is Barred Where Use Would Contradict Express Terms of ESOP
Hinshaw & Culbertson LLP Sept. 28, 2021 "The Ninth Circuit ... explained that ... [if the ESOP's trustee] is correct that the ESOP overpaid for the company stock sold to it by Mr. Kemper, then applying equitable estoppel would require the ESOP to pay greater than the fair market value of the shares on their date of purchase. This would contravene the express terms of the ESOP, which requires that the shares be purchased at fair market value on the date of purchase." [Wong v. Flynn-Kerper, No. 19-56289 (9th Cir. Jun. 7, 2021)] |
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