Data Processing Services
This industry comprises establishments primarily engaged in providing infrastructure for hosting or data processing services. These establishments may provide specialized hosting activities, such as web hosting, streaming services or application hosting; provide application service provisioning; or may provide general time-share mainframe facilities to clients. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services.
NetApp, Inc. v. Cinelli
The defendant hid improper recording of revenue from use of internal software in unaudited financial statements that were represented to be GAAP-compliant. The defendant was held to have breached the merger/sale contract in a manner that resulted in fraud. The plaintiff was awarded damages. The court accepted the expert’s GPCM as the most “responsible estimate” of the private company’s value as it was presented to the plaintiff.
Seller Breached Terms of Merger Agreement Including That Statements Were GAAP-Compliant—Expert’s GPCM Accepted
The defendant hid improper recording of revenue from use of internal software in unaudited financial statements that were represented to be GAAP-compliant. The defendant was held to have breached the merger/sale contract in a manner that resulted in fraud. The plaintiff was awarded damages. The court accepted the expert’s GPCM as the most “responsible estimate” of the private company’s value as it was presented to the plaintiff.
Court Reverses Its Order to Strike Expert Testimony That Utilized the Discounted Cash Flow Method in Valuing a Business
This case was a motion to reconsider the court’s ruling that struck expert testimony because the expert used the discounted cash flow method to determine the value of a business that went out of business. Upon reconsideration, the court decided that such method was allowable in this case and, therefore, the testimony should be reinstated and presented to the jury for use in determining damages.
V5 Techs., LLC v. Switch, Ltd.
This case was a motion to reconsider the court’s ruling that struck expert testimony because the expert used the discounted cash flow method to determine the value of a business that went out of business. Upon reconsideration, the court decided that such method was allowable in this case and, therefore, the testimony should be reinstated and presented to the jury for use in determining damages.
In re AOL Inc.
In statutory appraisal, court finds sales process was not “Dell compliant” and declines to assign any weight to deal price; court agrees with parties’ experts that DCF best captures fair value on valuation date and arrives at final value below deal price.
Chancery Relies on DCF Where Deal Process Is Not ‘Dell Compliant’
In statutory appraisal, court finds sales process was not “Dell compliant” and declines to assign any weight to deal price; court agrees with parties’ experts that DCF best captures fair value on valuation date and arrives at final value below deal price.
No Legal Barrier to Expert’s Adjusted Lost Profits Analysis
Federal Circuit upholds lost profits award based on adjusted market share analysis, finding expert accounted for huge price disparity between patentee’s product and infringer’s product and based market elasticity discount on sound economic principles.
Shaky Industrial Plant Valuation Survives High Court Review
Tax court adopts taxpayer expert’s value of the loss determination underlying real market valuation of industrial plant; state’s high court affirms but notes unresolved contradiction in financial feasibility analysis underpinning expert’s final valuation.
Akamai Techs., Inc. v. Limelight Networks, Inc.
Federal Circuit upholds lost profits award based on adjusted market share analysis, finding expert accounted for huge price disparity between patentee’s product and infringer’s product and based market elasticity discount on sound economic principles.
Hewlett-Packard Co. v. Benton Cnty. Assessor
Tax court adopts taxpayer expert’s value of the loss determination underlying real market valuation of industrial plant; state’s high court affirms but notes unresolved contradiction in financial feasibility analysis underpinning expert’s final valuation.
Federal Circuit Discredits Expert for Using ‘Discarded’ 25% Rule
Federal Circuit reverses $8.3 million award because expert used the “now discarded” 25% rule of thumb and conducted a “superficial” Georgia-Pacific analysis to reach unrealistic conclusions.
Whitserve, LLC v. Computer Packages, Inc.
Federal Circuit reverses $8.3 million award because expert used the “now discarded” 25% rule of thumb and conducted a “superficial” Georgia-Pacific analysis to reach unrealistic conclusions.
Cornell University v. Hewlett-Packard Co.
District court sets forth three-part test to justify the use of the entire market value rule in the context of a reasonable royalty; it includes a showing from the plaintiff that the infringing components represent the basis for customer demand for the en ...
‘SLR’ Method to Value Stock Too Novel to Pass Daubert Challenge
Straight-line ramp-up (SLR) method to value stock fails under Daubert challenge.
Haupt v. Heaps
Straight-Line Ramp-up (“SLR”) method to value stock fails under Daubert challenge ...
Shannon Haslund v. Simon Property Group, Inc.
The U.S. Court of Appeals for the 7th Circuit considered the value of a 1% interest in a startup company, which was established using two post-valuation date transactions.
Premise of Value Issue in Bankruptcy
The issue in this Chapter 11 bankruptcy is whether the secured creditors would receive more under a liquidation of the debtors’ businesses under Chapter 7 than they would under the Chapter 11 plan.
In re Lason, Inc.
At issue in this case is whether or not the asset in question can be valued as a going concern at fair market value.
Lost Earnings Calculated
The Alaska Supreme Court reversed the trial court’s award of lost earnings and struck the jury’s award of lost future earnings in this wrongful termination case.
Admission of Experts and New Business Rule Considered
The 9th Circuit Court of Appeals affirmed the district court’s admission of expert testimony regarding lost profits and refusal to apply the new business rule.
Humetrix, Inc. v. Gemplus, S.C.A., et al.
The 9th Circuit Court of Appeals affirmed the district court’s admission of expert testimony regarding lost profits and refusal to apply the new business rule.
Sandra W. Warner v. Charles H. Warner
The Missouri Court of Appeals, Western District, affirmed the lower court’s inclusion of unvested stock options in the marital estate. The options were awarded to the husband after the start of the dissolution hearing but before the date of entry of the d ...
Unvested Stock Options Subject to Equitable Division
The Missouri Court of Appeals, Western District, affirmed the lower court’s inclusion of unvested stock options in the marital estate. The options were awarded to the husband after the start of the dissolution hearing but before the date of entry of the d ...
ALLTEL Information Services, Inc. v. FDIC
The 9th Circuit affirmed the lower court's decision denying ALLTEL recovery of lost profits under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) after the FDIC repudiated its contract with a bank.