Fidelity Wins Battle Over Donated Stock, Alleged Tax Losses (2)

March 1, 2021, 3:32 PM; Updated: March 1, 2021, 8:09 PM

A Fidelity Investments charitable wing didn’t violate obligations when it liquidated tens of millions of dollars of donated stock over about 2.5 hours, during which the stock’s value dropped about 30%, a federal court ruled.

Donors Emily and Malcolm Fairbairn sued Fidelity Investments Charitable Gift Fund over the liquidation, alleging the charity vehicle broke promises to the pair and was also negligent in how it converted their donated stock to cash. The actions, they said, reduced the value of their donation by about $9.6 million and their tax deduction by about $3.3 million.

The Friday ruling...

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