We assisted our client in a litigation involving the valuation of shares of a C corporation whose main asset was real estate. We needed to determine whether the value of the shares should be discounted for the entire amount of built in capital gains tax or a portion of it, reflect the reduced value from selling and liquidation expenses or discounted for lack of marketability.
Known for our collaborative approach to business solutions, our litigation, tax and business attorneys worked collaboratively. We negotiated a favorable settlement of the case before the United States Tax Court case following a full trial and while awaiting a decision.
Our client, a hospitality industry employer, was faced with a multi-location class/collective action. A group of former employees brought a federal court action on behalf of an entire class of employees at two of its affiliated companies. They were seeking years of allegedly unpaid overtime under the Fair Labor Standards Act (FLSA) and state law. Even technical FLSA violations can potentially lead to significant damages and attorneys’ fees. If the court approved the class action, claims could have been brought on behalf of all similarly situated employees at both companies.
Through aggressive discovery, we limited the action to fewer than ten plaintiffs. We significantly reduced the value of each claim based on inconsistent testimony, for pre-trial resolution at a fraction of the potential liability. We advised the client on pay and record keeping best practices going forward to avoid similar claims in the future.