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Advocate’s Edge

Showing 1–16 of 336 results

  • Wayne L. Ryan Revocable Trust v. Ryan – Beware of “downward bias” in buyout cases

    November / December 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 432

    Abstract: In shareholder disputes, a company (or the other shareholders) may elect to buy back shares of dissenting or oppressed shareholders to avoid corporate dissolution. The underlying consideration when courts evaluate the buyout price is fairness. This article summarizes a recent buyout case in which the Nebraska Supreme Court affirmed a district court’s finding that the “downward bias” of the company’s expert rendered his conclusion “inherently unreliable.” Wayne L. Ryan Revocable Trust v. Ryan, No. S-19-951 (Neb. April 9, 2021).

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  • Tracking down hidden personal and business assets

    November / December 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 635

    Abstract: To achieve a fair and equitable resolution in a divorce case, it may be necessary to trace assets and income that a spouse has hidden to reduce child support, alimony liability or the final settlement amount. Attorneys and clients don’t have to go it alone, however. This article discusses how financial experts can use lifestyle analysis and forensic accounting techniques to shed light on the situation.

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  • How to minimize the risk of financial misstatement

    November / December 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 580

    Abstract: Thanks to COVID-related financial pressures, market volatility and recent changes to the accounting rules, the risk of financial misstatement is currently high. Whether intentional or inadvertent, material misstatements can mislead investors and lenders who rely on them to make important business decisions. This article highlights some warning signs to watch for and ways clients can prevent misstatements from happening in the first place.

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  • Undervaluing assets comes back to bite estate

    November / December 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 889

    Abstract: Valuation matters are critical in gift and estate planning. This article summarizes two recent cases where the U.S. Tax Court addressed value-related issues. The court sided with the IRS in one case (Estate of Morrissette) and the estate in the other (Estate of Jackson). In both cases, the court’s decision came down to whether the expert applied reasonable analysis to the facts of the case. Estate of Clara M. Morrissette v. Commissioner, T.C. Memo. 2021-60 (Tax Ct. May 13, 2021). Estate of Michael J. Jackson v. Commissioner, T.C. Memo. 2021-48 (Tax Ct. May 3, 2021).

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  • Rochkind v. Stevenson – Maryland gets on board with Daubert

    September / October 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 451

    Abstract: Maryland’s highest court has belatedly joined the majority of jurisdictions in the United States in adopting the 1993 Daubert test for determining the admissibility of expert scientific testimony. This article explains why the court decided to abandon the state’s former “two-channel” approach in favor of a broader 10-factor approach. Rochkind v. Stevenson, No. 24-C-11-008722 (Md. Aug. 28, 2020). Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). Frye v. United States, 293 F. 1013 (D.C. Cir 1923). Reed v. State, 283 Md. 374, 381 (1978).

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  • Using the statement of cash flows to spot fraud

    September / October 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 573

    Abstract: Fraud studies show that cash is the most frequently stolen business asset. The statement of cash flows shows how cash changed during the year. This article explains how cash from operations can be analyzed to help detect fraud and financial misstatement scams.

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  • How to value a business in an uncertain marketplace

    September / October 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 673

    Abstract: The COVID-19 pandemic has dramatically altered the business world, forcing valuation experts to rethink some of their forecasting models and methods. This article explains how experts approach business valuation assignments differently in today’s volatile marketplace.

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  • Do your clients understand the tax treatment of their settlements?

    September / October 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 856

    Abstract: A client’s elation over receiving a healthy settlement amount can quickly turn sour when the tax implications are revealed. This article summarizes two recent rulings from the U.S. Tax Court that serve as valuable reminders that “gross income” is defined broadly, while statutory exclusions, including those for damages, are narrowly construed. A sidebar explains the return of capital exclusion. Stassi v. Commissioner, No. 2021-5 (Tax Ct., Feb. 8, 2021). Blum v. Commissioner, No. 2021-18 (Tax Ct., Feb. 18, 2021).

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  • Court explains “built-in” apportionment in royalty calculation

    July / August 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 406

    Abstract: The Federal Circuit Court of Appeals affirmed a massive damages award based on reasonable royalties in a recent patent infringement case. This article summarizes why the court dismissed the need to apportion damages among infringing and noninfringing components in the accused invention. Vectura Ltd. v. GlaxoSmithKline LLC, No. 2020-1054 (Fed. Cir., Nov. 19, 2020).

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  • Tax issues to consider in divorce settlements

    July / August 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 554

    Abstract: When settling a marital estate, it’s important to consider federal tax issues — especially as tax laws are expected to generally become less favorable with the change of administration. This article highlights the tax implications of transferring marital assets between spouses when a divorce is settled and beyond.

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  • Forensic accounting investigations – Expertise is critical when conducting interviews

    July / August 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 733

    Abstract: During fraud investigations, interviews of witnesses and suspects are used to gather information. Care should be taken when interviewing company personnel and gathering other evidence to protect the chain of custody and ensure that the findings can be admitted in a legal proceeding. This article discusses the types of questions forensic experts ask, the process of interviewing witnesses and suspects, and behavioral red flags of deception.

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  • Raley v. Brinkman – Should pass-through earnings be tax affected?

    July / August 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 809

    Abstract: The Tennessee Court of Appeals recently weighed in on the ongoing debate over whether a pass-through entity’s projected future income should be reduced for hypothetical corporate income taxes when valuing the business. This article explains why the court found that so-called “tax affecting” was appropriate in this buyout case. Raley v. Brinkman, No. 2018-02002 (Tenn. App., July 30, 2020). Delaware Open MRI Radiology Associates v. Kessler, 898 A.2d 290 (Del. Ct. Ch., 2006). Estate of Jones, TC Memo 2019-101, August 19, 2019.

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  • Warning: Ambiguous support provisions can prolong divorce cases

    May / June 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 429

    Abstract: Ideally, a separation agreement brings divorce litigation to a definitive resolution. But poorly drafted agreements can lead to multiple rounds of litigation. This article summarizes a recent Connecticut divorce case in which conflicting definitions of “pretax income from employment” in a couple’s settlement agreement led to 13 years of court battles. Marshall v. Marshall, No. 41216 (Conn. App., Oct. 6, 2020).

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  • Estimating impairment in the COVID-19 era

    May / June 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 605

    Abstract: The pandemic may have triggered an impairment test for some companies — even private ones that have opted to amortize goodwill under GAAP. Impairment charges reduce the value of acquired goodwill and lower profits for accounting purposes, which could signal a red flag to investors and lenders. This article explains what factors into the equation and why a business valuation professional is needed to make this accounting estimate.

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  • Close-up on kickbacks and corruption

    May / June 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 562

    Abstract: White collar crime is typically associated with asset theft and financial statement fraud. But more than 40% of fraud cases involve corruption, such as kickbacks, bid rigging, conflicts of interest and extortion, according to a recent study. This article highlights kickbacks and other types of corruption schemes, including ways to identify and prevent them.

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  • Magarik v. Kraus USA, Inc. – Bad assumptions sink expert’s plumbing business valuation

    May / June 2021
    Newsletter: Advocate's Edge / Litigation Support

    Price: $225.00, Subscriber Price: $157.50

    Word count: 839

    Abstract: Courts expect valuation experts to base their analyses on sound data and realistic assumptions. If they fail to do so, courts may disregard all or part of their conclusions. This article summarizes a recent statutory appraisal case from New York that highlights the importance of using reliable inputs when valuing a business. A sidebar explains why courts usually prefer objective, market-based valuation inputs over internally generated assumptions. Magarik v. Kraus USA, Inc., No. 606128-15 (Sup. Ct., Nassau Cty., April 28, 2020).

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