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Damages
On behalf of the unsecured creditors committee
of a multibillion dollar, multinational debtor operating under
Chapter 11, assessed damages attributable to defendants’
aiding and abetting a breach of fiduciary duty by debtor insiders.
Conducted forensic analysis of debtor transaction records.
Adjusted transaction records to restate debtor’s reported
revenues, debt, and cash flows consistent with the economic
substance of subject transactions. Quantified damages associated
with the destruction of debtor equity value. Computed as-is and
but-for profitability, coverage, leverage, and cash flow ratios
to determine the effect of as-is financial reporting on debtor’s
credit rating, established causal link between defendants’
actions and damages sustained by the plaintiff, and apportioned
damages amongst defendants.
For a newly established Internet retailer, provided expert
testimony in support of the damages claim attributable to an
alleged price-fixing conspiracy arising out of a resale price
management program. Examined competitors, customers, substitute
products, suppliers, and the possibility of new entry to support
the product market definition, focusing on facts related to
public and industry recognition, product characteristics and
usage, targeted customers, pricing and price sensitivity, and
marketing, sales, and distribution. Estimated expected but-for
lost revenues, incremental costs, and lost profit damages.
Developed product profitability studies to model a
“typical” vertically integrated manufacturer in
the specialty chemical industry. Analyzed aggregate and per unit,
variable and fixed, labor, raw material, and overhead costs.
Normalized productivity and cost allocation rates. Eliminated
intercompany profits. Evaluated relationship between raw material
costs, exchange rates, arbitrage, and hedging strategies. Model
used to estimate but-for prices in damages settlement negotiations
and rebuttal.
Consulted with attorneys on shareholder class action damages
involving bonds, options, and equities. Performed quantitative and
qualitative analyses using actual transaction, daily, and intra-day
data to estimate aggregate and firm-specific damages, analyze price
formation, critique opposing expert’s analysis, and assess the
case merits.
Consulted with attorneys on a shareholder class action and provided
analysis of damages theories, preparation of preliminary damages exposure
estimates, critique of opposing expert’s deposition, and assessment
of case merits. Also developed empirical and economic analysis of gold
derivatives and spot prices, as well as the supply and demand elasticity
for gold.