In a case arising under N.Y. Business Corporation Law § 501(c), concerning consideration paid to shareholders in a merger of two real estate companies, FKSA attorneys achieved success for their clients in a series of related appeals and cross-appeals in New York's Appellate Division (First Department). The lower court had dismissed the claims of FKSA's clients against certain defendants; that ruling was reversed by the Appellate Division, and the claims of FKSA's clients were reinstated. The lower court also had granted partial summary judgment in favor of FKSA's clients as against other defendants, and had entered a money judgment as against those defendants; that ruling in favor of FKSA's clients was affirmed on appeal. The Appellate Division decision affirms that shareholders in a corporation that is acquired by merger must be treated the same as all other shareholders holding the same class of shares. In addition, the Appellate Division ruled that plaintiffs asserting claims under BCL § 501(c) are entitled to 9% pre-judgment interest on the payments eventually recovered by them.

FKSA attorneys Edward A. Friedman, Kent K. Anker, and John C. Lin represent plaintiffs Philip Kassover and the Estate of Nathan Kassover, who owned approximately 23% of the shares of The Garden City Company prior to its acquisition by certain of the defendants in a 2002 merger. The case is Kassover v. PVP-GCC HOLDINGCO II, LLC, Index No. 602434/2005 (Supreme Court, New York County).