Ruddick Corp. v. United States

OPINION

WILLI, Senior Judge:

On the eve of a carefully planned nontaxable reorganization, by which investment banker and securities dealer R.S. Dickson and Company (RSD) joined with textile manufacturer American & Efird Mills, Inc. (A & E) to form the plaintiff, RSD, having a large net operating loss carryover and a poor prognosis for generating sufficient post-reorganization operating income to timely utilize it, caused its wholly owned venture capital subsidiary, Ruddco, to declare a dividend of 52,638 shares of American Credit Corporation (ACC) common stock with unrealized appreciation…