Physicians Dialysis Ventures, Inc. v. Griffith

Qualifications, Experience Make This Appraiser Nearly Unassailable

Court articulates qualifications that make business appraiser nearly “bulletproof” under Daubert challenge.

Tidwell Industries, Inc. v. Diversified Home Products, Inc.

May Experts Rely on Client Financials and Customer Interviews?

Court considers whether lost profits expert may rely on client financial information and customer interviews.

Fisherman Surgical Instruments, LLC v. Tri-Anim Health Services, Inc.

Holes in Economic Damages Model Preclude Admission under FRE 702

Economic damages models fail for faulty assumptions based on unverified sales forecasts and growth expectations for distributor of surgical instruments.

Hinz v. Neuroscience, Inc.

Plaintiff Stakes $1.99 Million Lost Profits Award on Single ‘Benchmark’ Year

Plaintiff loses $1.99 million lost profits award by relying on flawed benchmark sales data.

Parlour Enterprises Inc. v. The Kirin Group, Inc.

Court Outlines Key Factors In Calculating Lost Profits for Unestablished Business

Court denies lost profits claim for unestablished business based on speculative management forecasts and lack of credible market data.

University of Pittsburgh v. David W. Townsend

Federal Court Clarifies Rule on Discovery of Draft Valuation Reports

Court considers motion to exclude expert testimony for their admitted destruction of draft reports and emails, and for their use of reasonable royalty methodology.

Try Hours, Inc. v. David L. Swartz, et al.

The Court of Appeals of Ohio reversed the trial court’s granting of summary judgment for defendants on the basis that plaintiff’s damages were speculative and that the methodology used by plaintiff’s expert to calculate lost profits was flawed. The reviewing court found that the damages calculation gave rise to genuine issues of material fact that precluded the summary dismissal of plaintiff’s claims.

Morgan Stanley & Co. Inc. v. Coleman (Parent) Holdings Inc.

Reversal of Fortune: $1.45 Billion Verdict Vacated for Lack of Fraud-Free Valuation

Florida Court of Appeals reverses largest jury verdict to date for economic damages ($1.45 billion) for lack of "fraud-free" evidence related to claims that investment bank helped to fraudulently inflate the value of plaintiff's target acquisition (Sunbea ...

CADCO Inc. v. Fleetwood Enterprises, Inc.

When Experts Do Everything Right: Three Lost Profits Cases Withstand Appeal

Fleetwood Enterprises, Inc., and Fleetwood Homes of Texas, L.P., ("Fleetwood") appeal from the trial court's judgment in favor of CADCO, Inc., and Bankers National, Inc., doing business as Imperial Homes, Inc. ("CADCO"), and awarding ...

TruGreen Companies, L.L.C. v. Scotts Lawn Service, et al.

Court Questions Whether Non-BV Expert May Testify to Lost Profits/Damages

In case of stolen employees (breach of non-competes), a report from non-BV expert fails to provide reliable basis for lost profits, economic damages calculation.

Gordon Partners v. Blumenthal

Two Economic Damages Cases Dismissed for Lack of Reliable Valuation Evidence

Hedge fund unable to prove damages from securities fraud without an expert analysis of market conditions and effect of public information on stock prices.

Celebrity Cruises, Inc. v. Essef Corp. (I)

Court Reverses $190 Million Damages Award, Finding Faulty Valuation ‘Yardstick’

Court vacates $190 million lost profits/lost enterprise value award based on flawed comparables and financial analysis.

Bero Motors, Inc. v. General Motors Corporation

Lost Profits Award Based on Comparable Dealerships and Management Projections Affirmed

The Michigan Court of Appeals concluded that a lower court did not abuse its discretion when it admitted economic experts testifying to the quantum of lost profits in this breach of contract action.

Brent E. Clary v. Lite Machines Corporation

Business’s Lost Profits Considered in Attorney Malpractice Case

The Indiana Court of Appeals affirmed an award of lost profits in an attorney malpractice action. In doing so, it held that the lost profits award need not be limited to the damages that were recoverable in the case that gave rise the malpractice claim an ...

Nebula Glass International, Inc. v. Reichhold, Inc.

Expert’s Testimony Is a Reasonable Yardstick to Find Lost Profits Reasonably Certain

The U.S. Court of Appeals for the Eleventh Circuit affirmed a jury’s award of lost profits in this breach of warranty/breach of contract case.

Fairway Dodge, Inc. v. Decker Dodge, Inc.

Assumption Underlying Lost Profits Analysis Challenged as 'Net Opinion'

The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...

Saks Fifth Avenue, Inc. v. James, Ltd.

Lost Profits Attributable to Loss of At-Will Employee Stricken

The Virginia Supreme Court reversed a trial court’s decision and struck a lost profits calculation that attributed the entire loss in profits to the loss of an at-will employee because the calculation did not differentiate between the loss attributable so ...

Gesoff v. IIC Industries Inc., et al.

‘9/11 Defense’ Fails to Justify Unfair Merger

The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...

PSKS, Inc. v. Leegin Creative Leather Products, Inc.

Damages for Price Fixing Determined Using Historical Sales

The U.S. Court of Appeals for the Fifth Circuit affirmed a jury’s award of lost profits in this vertical minimum price fixing antitrust action. The lost future profits award was calculated based on 3-year average of PSKS’ sales of Leegin goods, where gros ...

Penn Mart Supermarkets, Inc. v. New Castle Shopping, LLC

Event Study Analysis Rejected When Other Possible Events Not Considered

The Delaware Court of Chancery rejected a lost profits computation based on an event study analysis that failed to consider all possible events that may have resulted in the lost profits in this breach of a protective convent in a lease case.

In re Xcelera.com Securities Litigation

Sophisticated Event Study Analysis Illustrates Efficient Market

The U.S. Court of Appeals for the First Circuit affirmed a class certification based on evidenced of an efficient market. The court applied the Cammer Factors to determine if the Fraud on the market theory was appropriate. It gave the most weight to the c ...

Kairos Scientific Inc. v. Fish & Richardson, P.C.

Attorney Malpractice Resulted in $30 Million Lost Profits Award

The California Court of Appeal, 1st District, reversed a $30 million damages award in this attorney malpractice action.

American Federal Bank v. United States

Cost of Replacement Capital in Mitigation Model Must Be Based on Actual, Related Transactions

Cost of replacement capital in mitigation model case must be based on actual events, and not post-mitigation merger and issuance of common stock.

Telxon Corporation v. Smart Media of Delaware, Inc.

Startup Company May Not Recover Lost Profits Based on Post-Valuation Date Business Plan

The Ohio Court of Appeals, 9th District, reversed a jury’s damages award in this breach of contract and tort action.

Fairmont Supply Company v. Hooks Industrial, Inc.

Yardstick Method Challenged

The Texas Court of Appeals for the First Distinct considered whether the trial court erred when it admitted expert testimony as to lost profits, which utilized the yardstick method.