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Commercial litigation and valuation

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Overview

Bates White has deep expertise in general commercial litigation matters and valuation of complex and non-traded instruments. Our experts have performed valuation analyses of lost profits; businesses; and equity, fixed-income, and derivative securities in a myriad of contexts and industries.

We also have extensive experience in valuing equity options, warrants, swaps, credit derivatives, conversion features, and real options. In addition to financial products, we also have broad experience dealing with commercial damages issues arising from a wide variety of actions, including breach of contract, fraudulent disclosure, antitrust, and patent infringement. Regardless of the context, we tailor our approach to apply the appropriate valuation techniques to deliver a truly customized and economically sound and defensible analysis of the case.

Selected Work

  • Complex securities portfolio valuations
    • Provided analysis in a Securities and Exchange Commission civil suit involving the mark-to-market valuation of a portfolio of credit default swaps at a large financial services firm. 
    • Karl Snow provided expert testimony in a breach of contract dispute regarding the assets purchased by the asset manager and trustee of a European Collateralized Debt Obligation. 
  • Business valuation. Performed valuation of shares in a private Indian bank in an arbitration between a client and a private equity firm. 
  • Drug R&D portfolio valuation. Testified on behalf of plaintiffs in Wells Fargo Bank, N.A. et al. v. Merrimack Pharmaceuticals Inc., a matter regarding allegations that Merrimack’s sale of its only marketed oncology drug constituted a substantial asset sale, which, under the terms of the indenture governing the convertible notes, triggers the repurchase of convertible notes held by the plaintiffs.
  • Valuation of ownership stake in private equity. Karl Snow testified on behalf of defendants in Tarrus Richardson vs. Tyson Pratcher and Raudline Etienne, a dispute regarding damages to a terminated employee of ICV Partners, a private equity fund. 
  • Hedge fund valuation. Performed valuation analyses to estimate losses incurred by a hedge fund manager resulting from termination in an arbitration proceeding. 
  • Breach of contract and lost profits cases
  • Due diligence case. Supported expert testimony in an investor lawsuit regarding due diligence
  • Cryptocurrencies. Valuation of different types of cryptocurrency companies or projects (from currency tokens to usage tokens or application tokens generally issued in initial coin offerings) and assessment of the growth potential of an ecosystem, using well-established, sophisticated valuation techniques for modelling uncertainty and benchmarking.

Publications

Courts Favor Valuation Methodology Supported by Case Facts

Bates White Principal Ilan Guedj and Manager Saurav Karki provide an overview of important inputs and assumptions in an expert’s valuation in reviewing a 2017 ruling by Delaware Court of Chancery ruling, In re Appraisal of SWS Group, Inc. In the ruling, the Court opined regarding the choice of valuation methodologies in appraisal litigation, the importance of unique case facts, and the selection of several inputs in the valuation model by the experts representing the two opposing parties.

An Economic Primer on Valuing Cryptocurrencies

Startups and projects are raising more and more money through initial coin offerings. At the beginning of 2018, the aggregate market capitalization of cryptocurrencies hit an all-time high of more than $800 billion; and despite the recent decline in value, some foresee this market hitting $1 trillion by year’s end. The increasing popularity of cryptocurrencies has fostered much legal debate, and many enforcement actions have been taken in recent months. Manager Simona Mola and Senior Economist An Wang contribute to the debate in their article by offering an economic perspective on cryptocurrencies—in particular, what drives the value of a cryptocurrency. From an economic standpoint not all cryptocurrencies are created equal, however, and understanding their differences has crucial implications on their valuation.

News & Insights

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