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Kornreich Reaffirms Skepticism Toward Marketability Discounts

January 07, 2015

In the January 5th issue of the Commercial Litigation Insider Peter Mahler was quoted in an article on the Zelouf case. Manhattan Commercial Division Justice Shirley Werner Kornreich has questioned the practice of applying a discount to the value of stakes in closely held corporations because they are not easily sold. Peter , whose writing on discount for lack of marketability (DLOM) was cited by Kornreich in Zelouf, said the judge “really nailed it” in identifying the lack of appellate guidance about applying DLOMs to close corporations. The last major case on the issue, he said, was the Second Department’s decision in Matter of Blake from 1985.

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