NEW:  Farrel Fritz discusses validity and effect of transfers of LLC membership interests under New York law, noting that transfer rights can be subject to restrictions that are strengthened, weakened, or eliminated by the terms of an LLC Agreement, but statutory default rules leave involuntarily withdrawn members with economic interest rather than membership interests in Turmoil Follows Involuntary Transfers of LLC Membership Interests.

Farrel Fritz discusses the New York Appellate Division’s decision in Julius Behrend v. New Windsor Group, LLC, et al., No. 17-01392, opinion (N.Y. App. Jan. 29, 2020), affirming a ruling that the purported transfer of an interest in an LLC without unanimous consent of the other LLC members, required under the LLC agreement, did not make the transferee an LLC member, and resulted only in transfer of entitlement to receive distributions and profit and loss allocation, in Always Check Provenance Before Taking an Assignment of LLC Interest.