Businesses Failure We identified the true causes of business failure and rebutted claims of misrepresentation. The case was filed by the owners of a failed start-up distribution company. They claimed that their leading brand-preference supplier had misrepresenting future potential sales, thereby inducing them to enter a line of business in which they were predestined to fail. We showed that the business actually failed because of incompetent planning and management, made worse by financial shortcomings.
Business “Divorce” We have valued business holdings and identified malfeasance when business owners split up.In one dramatic case, an elderly woman was the 50% owner of a very profitable business. Her much younger co-owner first tried to trick her and failing that resorted abusive behavior to pressure her to accept roughly $100,000 for her stock. We appraised her holdings at nearly $2,500,000. He settled close to our number.
Fiduciary Duty We identified breaches of fiduciary duty and inducements and collaboration by third parties in such breaches in a complex $17-million investment fraud and misappropriation of fund case. The fraud involved several limited partnerships and other corporate entities. There were numerous purchases, sales and exchanges of property and transactions conducted with no financial or accounting records. In only three weeks, the JSA team was able to distill the key facts and submit a comprehensive report. The case was settled through arbitration shortly thereafter. Counsel complemented JSA on its ability to quickly and effectively grasp the issues.
Fiduciary Duty We found and documented numerous breaches of fiduciary duty on the part of management and the Board of Directors in a $7-million securities fraud case. The case involved the public offering of a shell corporation purporting to have a valid internet concept, and subsequent misuse of the offering proceeds.
Interference With Business Relationships We calculated damages in a $100-million lawsuit involving a major international corporation. A firm of independent sales representatives claimed that a major international corporation had systematically interfered with long-established relationships and destroyed their business after a merger by the big firm with one of the plaintiff’s largest customers. Damages of $100-million were claimed. We showed that actual damages were roughly $5-million. The case settled close to our number.
Wrongful Death. We rebutted damage claims in a $26-million wrongful death case. Plaintiff’s economist had grossly overestimated the future earnings capacity of the deceased by averaging two multi-million dollar capital gains made during the technology boom into the historic income on which lost future income was computed. The economist also made other material unsupportable assertions. We showed that damages did not exceed $5-million.
Wrongful Discharge We value damages in wrongful discharge cases. These have included actions involving various corporations, and one against a municipality where city officials were shown to have falsified dates and forged signatures in an effort to avoid the consequences of their actions.