The Duty to Disclose Third-Party Offers Amidst Buy-Out Negotiations, Revisited | Farrell Fritz, P.C.
Now there’s a fourth, Bak v Rostek, 2020 NY Slip Op 33142(U) [Sup Ct Kings County Sept. 25, 2020], in which a 47.5% member of a single-asset realty-holding LLC sold his membership interest to the other 52.5% member for around $900,000 based on a $1.9 million valuation assigned by the buying member. One month later, the buying member sold the LLC’s property to a third-party buyer for $2.9 million. After learning of the sale, the 47.5% member sued the other member for damages equal to the delta between what he received in the buyout and 47.5% of the net proceeds from the $2.9 million sale,...
Source: jdsupra.com