Focus on fairness – Discounts may apply when valuing shares in oppression cases

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Abstract: The appropriate standard of value when buying out shares in most oppressed shareholder cases is fair value. The application of valuation discounts under this standard of value varies from state to state, but it often depends on the facts and circumstances of the individual case. This article discusses a recent case in which the Superior Court of New Jersey granted a sizable discount for lack of marketability to provide equity to the disputing shareholders. Wisniewski v. Walsh, No. A-2650-13T3, Superior Court of New Jersey, Appellate Division, December 24, 2015 Mandelbaum v. Commissioner, T.C. Memo 1995-255, June 12, 1995