Complex Commercial Litigation – Fraud and Damages
- Large Private Equity Firm sued by one of its partners alleging accounting fraud.
- We evaluated each alleged instance of accounting fraud by, among other things, tracing the flow of funds through the relevant accounting records.
- Our expert report and testimony at trial in New York was instrumental in proving that not only had our client not committed fraud, but the plaintiff was actually responsible for the conduct that gave rise to the litigation.
- The trier-of-fact awarded substantial damages to our client and dismissed the fraud claim.
Damage Quantification – Earn-Out of Lost Profits Calculation
- Our client, a large North American electricity and natural gas retailer, was sued by the former owners of one of its acquired subsidiaries. The former owners alleged that they were owed additional monies in connection with an earn-out agreement.
- Our procedures included a detailed analysis of the very complicated earn-out agreement and the financial statements of the acquired entity, both before and after the acquisition.
- We computed the amounts due under the earn-out agreement and provided a rebuttal to the former owners’ accounting expert’s report.
- Shortly after the submission of our expert report, the arbitrators assigned to adjudicate the dispute dismissed the former owners’ claim.
Complex Commercial Litigation – Profits Disgorgement
- Our client, a global industrial organization, sued in federal court for allegedly competing with product lines that were required to be spun-off as a result of a major acquisition.
- Assisted the client by performing an analysis of all domestic and international sales to search for the sales of product that were potentially prohibited under the divestiture agreement.
- Worked collaboratively with the client’s accounting, legal, technology, manufacturing and sales personnel.
- Developed appropriate algorithms to electronically search for the sale of potentially prohibited products over an eight-year period among the manufacturer’s billions of dollars of sales.
- Successfully modified the algorithms to operate among the variations in data stored in its various disparate accounting systems.
- Our work was performed at sites in North America and Europe.
- The results of our work were instrumental in rebutting the plaintiff’s allegations and achieving a negotiated settlement prior to trial.
Litigation – Multi-Year Supplier Overcharges
- Provided discovery assistance to ensure all relevant information was obtained from the opposing party and the opposing party’s expert in connection with allegations.
- Performed detailed testing and analysis of the opposing expert’s damage calculation.
- Created alternative damage calculation.
- Provided cross examination question assistance at various depositions.
- Provided expert testimony at deposition and trial.
- Assisted in development of evidence resulting in new trial.
- Assisted with the development of information resulting in the withdrawal of opposing expert’s damage calculation and settlement of the litigation prior to second trial.