Damages in complex business litigation & breach of contract disputes
Transaction and loss causation
Damage valuation involving Section 10 and 11 and Rule 10b(5) claims
Catalyst Economic Consulting is experienced in conducting economic damages analyses and valuation services that help clients better understand the effects of and make claims on economic loss. We have conducted the financial and statistical analyses required to support reliable claims and settlements of economic damages in a variety of cases. Our damages experts translate the results of these sometimes complex analyses into easily understood testimony.
Breach of Contract
Damages related to contractual breaches may be measured as expectation damages, reliance damages, or restitution damages. The determination of which method to choose and the application of that methodology itself require complex economic, financial and statistical analysis.
We perform the economic analyses required to establish reliable damage valuation in breach of contract disputes, including lost profits. We have also calculated or evaluated expectation damages, reliance damages, and restitution damages in a variety of industries.
This breach of contract matter involved a joint venture in which a partner delayed execution of his contractually stated commercialization efforts. We examined whether the partner was economically reasonable in delaying the execution of its obligations under a pharmaceutical development joint venture. Our analysis demonstrated how parties understood and valued the option to delay commercialization within the joint venture agreement given the uncertainties faced in the F.D.A. regulatory review process. Our analysis was relied upon in reaching a favorable outcome in mediation.
Lost profit damages are intended to estimate the total sum of money lost due to a contractual breach. However, lost profit damages may not always be the most appropriate economic remedy for some clients because they may be too speculative to calculate.
We are experts at conducting the complex lost profits analyses required to support breach of contract damages. Our experience in this area spans multiple industries including automotive, banking, business services, computer software,consumer retail, food and beverage, and telecommunications.
This breach of contract matter involved a former high producer within a retail bank that left the bank to work for a competitor. The producer was subject to a non-compete clause for a retail bank. We were asked to calculate lost profit damages caused by the producer’s poaching of client accounts. Our analysis examined business forecasts for related income, allocated the income between different employees, and identified the portion of income deemed to have been lost due to the breach. Our analysis was relied upon to reach settlement.
Class action damage calculations require careful analysis of both the fact and quantum of harm. To be reliable, the damages analysis should identify which class members are potentially harmed and quantify the amount of harm using data available to the class. However, in some cases, individualized inquiry is necessary to determine damages. Catalyst specializes in conducting the analyses required to calculate reliable class action damages and to evaluate proposed damages.
Securities Fraud and Class Action Litigation
Catalyst’s support and testimony has helped firms win big cases and settlements in securities class action litigation. We excel in conducting the event studies used to assess price impact and loss causation in Section 10, Section 11, and Rule 10b(5) claims. Our securities fraud experts have also been engaged to opine on market efficiency, reliance, materiality, and loss causation in matters involving stocks and bonds traded on the NASDAQ and NYSE, dual listed ADRs, and OTC traded stocks, bonds, and derivatives.