Quantification of Economic Losses
Non-Disclosure of Negative Events
Retained by a private equity investment fund that was concerned about an investment that was under-performing in comparison to the results that were observed during their pre-acquisition due diligence.
During the investigation, it was confirmed that certain events, known to the vendor, had occurred that directly – and negatively – impacted the operating results. The vendor had taken steps to conceal the negative events and did not disclose their existence to the purchaser. It was only after the transaction had closed and the negative events were now impacting the operating results that the purchaser became aware of their existence.
The matter settled during the trial after the plaintiff evidence, including the accounting evidence, had been entered into the proceedings and withstood cross-examination.
Patent Infringement
Retained by the defendant in a patent infringement dispute to perform an analysis of the profits from the infringing activity. The issue of liability had already been determined by the courts and the parties had each retained experts to perform the accounting of profits.
Worked with a team to identify all potentially infringing sales and developed costing models in order to calculate the costs associated with the infringing sales. We also had to consider issues relating to apportioning the profits between the patent in issue and other patents and factors that contributed to the overall profits earned.
Intellectual Property - Section 8 Damages
Retained by the plaintiff, a manufacturer of generic pharmaceutical products, in connection with a dispute concerning the improper delay they suffered in their efforts to bring their product to market. Liability had been determined by the court and each party retained independent experts to perform calculations of the plaintiff’s loss.
We relied on an economist for the calculation of the sales volumes and pricing that would have been enjoyed by our client had the improper delay not occurred. We then worked with our client to develop a model for calculating the costs associated with manufacturing and selling the products in order to calculate the profits that were lost during the period they were improperly prevented from selling their product. Our approach and calculations were accepted by the court.
Breach of Contract
Although every breach of contract dispute turns on the facts of the particular situation, the role for the accounting expert comes down to one fundamental question: what is the amount, in dollars, required to put the plaintiff in the position it would have been had the alleged breach by the defendant not occurred.
We have been retained by plaintiffs and defendants in a wide variety of breach of contract disputes. Our work can include reviewing available documentation produced by the parties, conducting interviews to supplement productions and searching information in the public record to corroborate the analysis. Our findings are presented in thorough reports and have been used by parties to negotiate solutions and as expert reports in litigation and arbitration.