Court Finds Facts Back Expert’s Value-Per-Subscriber Metric
Court finds trust failed to prove insolvency; its expert’s use of DCF alone was inappropriate where there were no cash flow projections untainted by fraud, but competing expert’s market-based approach and value per subscriber analysis were solid.
Bobby Fisher, Inc. v. Cerveceria Costa Rica, S.A.
Court rejects plaintiff’s lost profits approach to quantify diminished value of business due to loss of beer brands because of “untenable suppositions”; defendant’s income-based calculation was “only rational” approach offered in this case, court says.
MacDermid Printing Solutions, Inc. v Cortron Corp.
Court finds damages expert’s use of destruction of business method is not improper despite a four-year gap between the alleged offending conduct and the company’s demise, and it does not render his calculation inadmissible under Daubert.
Adelphia Recovery Trust v. FPL Group, Inc. (In re Adelphia Corp.)
Court finds trust failed to prove insolvency; its expert’s use of DCF alone was inappropriate where there were no cash flow projections untainted by fraud, but competing expert’s market-based approach and value per subscriber analysis were solid.
Myservice Force v. Am. Home Shield
In breach of contract suit, court strikes expert’s revenue forecasts, using Monte Carlo simulation, finding key assumption resulted from expert’s misreading of contract; court also strikes second expert’s valuation resting on inadmissible forecasts.
In re Rural Metro Corp. Stockholders Litigation
Financial advisor aided and abetted directors’ breach of fiduciary duty by causing ill-timed, below-fair-value sale of the company based on manipulated valuation analysis, including false and material information related to precedent transaction analyses.
Expert’s Analysis of Business Interruption Loss Breaks Over Selection of Growth Rate
Expert’s analysis of business-interruption losses breaks down over selection of a revenue growth rate from a short (five-month) period prior to the business injury.
Manpower, Inc. v. Insurance Co. of Pennsylvania (I)
Expert’s analysis of business-interruption losses breaks down over selection of a revenue growth rater from a short (five-month) period prior to the business injury.
Management Projections, Always Suspicious, Now Receive Even More Review
Management projections have always required scrutiny. However, now it seems they often require outright skepticism. And if they don’t receive this level of examination from the business appraiser, then they’ll get it from the auditors, the reviewers, the ...