Succession Plans Wrought by Blackmail, Affair Get Court Backing

The US likely overestimated a baby product company’s value when trying to collect additional taxes from its owners, who sold their business interests in the aftermath of an extramarital affair, the US Tax Court said Monday.

Kaleb Pierce and his ex-wife Jeanette Bosco began succession planning for their joint business, Mothers Lounge LLC, after Pierce received a blackmail demand for $100,000 within a week or else have evidence of his affair with a colleague revealed to Bosco. Pierce admitted to his infidelity, causing a breakdown in business operations ending in his resignation as chief executive officer, according to the court. ...