I was impressed with the commitment the Pluris team showed to our relationship, and I look forward to working with them again.

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BJ's Restaurants, Inc.

Litigation Support

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What types of cases does Pluris mostly get involved in?

Security litigation matters, for the most part. Pluris professionals are particularly well suited to appear as expert witnesses in cases where the damage amounts are based on the value-impact of various contractual or legal marketability restrictions placed on securities. We may also get involved in tax controversies. The typical case involves a defendant public company that is alleged to have breached its duty to register shares. The question of what damages the plaintiff suffered may be answered through an analysis of the discounts associated with various marketability restrictions. To discuss pending or prospective matters, please e-mail us.

Can you take on other cases, for example, cases involving business valuation issues?

Yes, we can. We may be involved in any case involving a valuation matter which is covered by one of our areas of expertise. To discuss pending or prospective matters, please e-mail us.

Why is the marketability discount such an incredibly contentious issue?

For several reasons. First, it is often the most significant valuation adjustment taken in disputed cases. Second, the theoretical foundation for the discount is poorly understood and only cursorily analyzed in the academic financial literature. Third, the methods used by taxpayers, companies, the IRS and the courts all have very significant shortcomings. The Tax Court has identified many of these shortcomings in recent decisions. Historically, the differences in positions taken by opposing valuation experts on the illiquidity discount have often been extreme. It is the goal of Pluris to contribute to removing some of the subjectivity and guesswork from the marketability discount determination. For this end, we have created the LiquiStat database, and will continue to publish research based on this empirical transaction data source.

How do you charge for litigation support services?

Because the length and complexity of litigation support projects can be hard to estimate upfront, we typically charge hourly fees for such services. To discuss pending or prospective matters, and to receive an estimated budget for such matters, please e-mail us.

What if we are trying to resolve matters without litigation?

We believe that a thoroughly researched valuation analysis can often resolve matters without resorting to litigation. A valuation report that's long on research and empirical data and short on unsubstantiated opinions has the potential to be accepted by both sides to a case or, failing that, to at least narrow their differences.

What if it is a Tax Court case?

The implications from the LiquiStat database are particularly important if the matter may end up in Tax Court. In several important decisions, the Tax Court has held that all of the traditional methods and data-sources used are suspect methods. Only "pure" illiquidity discount indications from arm's-length investor trades in restricted securities can be considered "untainted" indications of the marketability discount. To discuss how the LiquiStat database differs from the traditional methods and data sources, and to discuss the implications of recent Tax Court decisions, please e-mail us.