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DAF Sponsor Not Liable For Damages in Liquidating Stock

DAF Sponsor Not Liable For Damages in Liquidating Stock

DAF Sponsor Not Liable For Damages in Liquidating Stock

Court finds Fidelity Gift Fund did not breach contract and was not liable for negligence in sale of gift stock
In a long-anticipated ruling, Fidelity Investments Charitable Gift Fund has been found not liable to the donors to a donor advised fund who claimed that they were damaged significantly when Fidelity sold all 1.9 million donated shares of a thinly-traded company in the last 2.5 hours of trading of the last day of trading in December 2017. A magistrate judge in a Federal District Court in California has dismissed all of the donors’ claims. Malcolm and Emily Fairbairn founded a hedge fund where they managed over $3 billion. In 2017, because of a change in the tax law, they recognized about $250 million of off-shore income and decided to make a large charitable contribution to offset some of...

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