Court Favors Lost Profits Over Lost Value Damages for Surviving Business
In business tort case, court says damages to compensate plaintiff for loss of goodwill should take the form of lost profits, not total loss of value damages, where defendant employees were not subject to noncompetes and plaintiff was not completely destro ...
Mifflinburg Telegraph, Inc. v. Criswell, Inc.
In business tort case, court says damages to compensate plaintiff for loss of goodwill should take the form of lost profits, not total loss of value damages, where defendant employees were not subject to noncompetes and plaintiff was not completely destro ...
Doyle v. Doyle
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
Math and Logic Problems Mar Court’s Valuation and Division of Assets
Appeals court finds incongruities in trial court’s unreported cash income and profit rate inputs make court’s valuation of timber business meaningless; further, trial court failed to explain reason for equalization payment and arrived at incorrect amount.
Loss of Value Damages Does Not Require Showing of Complete Destruction
In tortious interference with business relations case, 8th Circuit says district court did not err when it allowed plaintiff’s expert to testify to total loss of value where company was not completely destroyed but harmed; damages award was not excessive.
West Plains, LLC v. Retzlaff Grain Co. (II)
In tortious interference with business relations case, 8th Circuit says district court did not err when it allowed plaintiff’s expert to testify to total loss of value where company was not completely destroyed but harmed; damages award was not excessive.
Kottayil v. Insys Therapeutics, Inc.
In shareholder suit involving pharmaceutical startup with uncertain prospects, appeals court upholds trial court’s rejection of expert testimony based on “traditional” valuation methods in favor of noncontemporary IPO valuation to determine fair value.
Court Validates Use of IPO Valuation in Fair Value Proceeding
In shareholder suit involving pharmaceutical startup with uncertain prospects, appeals court upholds trial court’s rejection of expert testimony based on “traditional” valuation methods in favor of noncontemporary IPO valuation to determine fair value.
In Big Buyout Ruling, Minnesota Court Rejects DLOM in Calculating Fair Value
In a forced buyout, court says experts were too partisan to their clients, compromising value analysis; court performs its own valuation using DCF to determine fair value of grocery business and rejects DLOM because no unfair transfer of wealth occurs.
Expert’s Damages Opinion Specific Enough for Class Certification Stage
In a securities case, court applies Daubert analysis to plaintiff expert’s market efficiency opinion and event study; expert is qualified even without academic background, and his damages opinion is sufficiently specific to facts of the case and reliable.
SEC’s Daubert Challenge to Securities Valuation Testimony Fizzles
In an SEC case requiring valuation of restricted securities, court admits most of the testimony of parties’ experts; experts need not be specialists in given field and need not demonstrate familiarity with USPAP or SSVS to qualify under Daubert, court fin ...
Defective Lost Profits Analysis Triggers Take-Nothing Ruling
High court discusses level of evidence required to establish future lost profits with “reasonable certainty”; plaintiff did not show it lost any contracts owing to defendants’ wrongdoing and failed to show profitability specific to claimed lost contracts.
Solvency Determination Turns on Income Recognition Analysis
Court credits trustee expert’s analysis of debtor’s balance sheet, finding the expert showed debtor’s practice of immediate recognition of initial franchise fees as revenue violated GAAP and debtor was continuously insolvent; transfers are avoidable.
Expert’s FMV Analysis Aligns With Applicable Healthcare Law
In healthcare case centering on Anti-Kickback Statute, court finds government expert’s FMV analysis of physician services, which excludes value and volume of referrals, accords with standard applying to AKS cases and is admissible under Daubert.
United States ex rel. Lutz v. Berkeley Heartlab, Inc.
In healthcare case centering on Anti-Kickback Statute, court finds government expert’s FMV analysis of physician services, which excludes value and volume of referrals, accords with standard applying to AKS cases and is admissible under Daubert.
Kardash v. Commissioner (III)
Appeals court upholds Tax Court’s transfer liability rulings; there was constructive fraud in that dividend payments to appellant were not compensation for services rendered but were part of a series of transfers leading to company’s insolvency.
Appeals Court Upholds Insolvency Rulings in Transfer Liability Case
Appeals court upholds Tax Court’s transfer liability rulings; there was constructive fraud in that dividend payments to appellant were not compensation for services rendered but were part of a series of transfers leading to company’s insolvency.
DFC Global Corp. v. Muirfield Value Partners, L.P. (II)
State Supreme Court declines to create presumption for appraisal actions that deal price is best indicator of value when merger was arm’s-length transaction, but court finds Chancery’s valuation approach lacked support in record and requires revaluation.
High Court Finds Chancery’s Weighting of Values Unexplained and Inexplicable
State Supreme Court declines to create presumption for appraisal actions that deal price is best indicator of value when merger was arm’s-length transaction, but court finds Chancery’s valuation approach lacked support in record and requires revaluation.
Trial court leans on peer review service for Daubert determination
When, in a Mississippi accounting malpractice case, the trial court used an outside "technical advisor" to determine the admissibility of the parties’ proposed expert testimony, the Daubert hearing assumed a whole other dimension. It was no longer simply a battle between the opposing experts, but an occasion for outside experts to judge the work of the parties’ experts.
Eleventh Circuit Affirms Tax Court’s Valuation of Trust’s Interest in LLC
Affirming FMV conclusion, appeals court says Tax Court did not err in focusing less on details of methodology parties’ appraisers used than on larger issue of whether hypothetical seller would be able to force distribution of majority of LLC’s assets.
NAV Alone Fails to Capture Distributional Interest’s Fair Value
Appellate court affirms fair value determination of distributional interest in family farm based on multiprong valuation; company is not a holding company, and net asset valuation alone fails to capture fair value of dissociating members’ interest.
CUT Method Prevails in Amazon’s Transfer Pricing War With IRS
In transfer pricing case, Tax Court says Amazon more accurately determined buy-in and cost-sharing payments by using CUT method to value separately three types of intangible assets; IRS’s DCF analysis results in improper enterprise valuation, court says ...
ACP Master, Ltd. v. Sprint Corp.
In joint fiduciary-appraisal action centering on Sprint’s acquisition of minority interest in related entity, Chancery says merger was entirely fair and adopts respondent expert’s DCF analysis; huge value gap is 90% due to experts’ choice of projections.
DCF Projections Failed to Reflect Target’s Operative Reality, Chancery Says
In joint fiduciary-appraisal action centering on Sprint’s acquisition of minority interest in related entity, Chancery says merger was entirely fair and adopts respondent expert’s DCF analysis; huge value gap is 90% due to experts’ choice of projections.