Litigation Services Handbook

The Role of the Financial Expert
 
 
Standards Information Network (Verlag)
  • 6. Auflage
  • |
  • erschienen am 31. März 2017
  • |
  • 1440 Seiten
 
E-Book | PDF mit Adobe-DRM | Systemvoraussetzungen
978-1-119-36316-3 (ISBN)
 
The comprehensive "bible" for financial experts providing litigation support
The Litigation Services Handbook is the definitive guide for financial experts engaged in litigation services. Attorneys require financial experts now more than ever, and this book provides the guidance you need to provide a high level of service as witness and consultant. Enhance your litigation skills as you delve into the fine points of trial preparation, deposition, and testimony; project authority under examination, and hold up to tough questions under cross-examination. Fraud investigations are a major component of litigation support services, and this book delves deep into Sarbanes-Oxley compliance and other relevant topics to give you a foundational understanding of how these cases are prosecuted, and your role as the financial services expert. This updated sixth edition includes new coverage of technology's role in the financial expert's practice, and the focus on investigations provides practical insight from leading experts in the field. From the process itself to proving damages, this indispensable reference covers all aspects of litigation services.
Providing litigation support requires more than just your financial expertise; you also need a working knowledge of relevant case law, and a deep understanding of both the litigation process and the finer points of courtroom appearances. This book provides the insight and perspective you need to provide superior service to attorneys and their clients.
* Understand your role in trial preparation and testimony presentation
* Provide authoritative responses to direct and cross examination
* Examine and analyze Sarbanes-Oxley rulings
* Lend financial expertise to fraud investigations
The growing demand for financial expert litigation services has created a niche market for CPAs, creating a lucrative opportunity for qualified accountants who also possess the specialized knowledge the role requires. The Litigation Services Handbook is THE essential guide for anyone involved in financial litigation.
6. Auflage
  • Englisch
  • New York
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  • USA
John Wiley & Sons Inc
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978-1-119-36316-3 (9781119363163)
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Roman L. Weil (Chicago, IL), PhD, CPA, CMA is V. Duane Rath Professor of Accounting at the University of Chicago.?Weil is director of the Chicago/Stanford/Tuck Directors' Consortium, which he co-founded. Weil has also designed and implemented continuing education programs for partners at the accounting firms of Andersen and PricewaterhouseCoopers as well as for employees at Goldman Sachs, Montgomery Wards, Merck, and William Blair and for business executives in Great Britain, Singapore, and Hong Kong. He also has been a visiting professor at Harvard Law School, Princeton Economics Department, and NYU Stern School.

Daniel G. Lentz (Washington, DC) is Partner and National Leader of Ernst & Young's Dispute Services team within E&Y Fraud Investigation and Dispute Services practice. He is co author of The Business Interruption Book: Coverage, Claims and Recovery. Lentz has worked with numerous companies in developing their business interruption claims related to the 9/11 terrorist attacks in New York, as well as losses sustained in natural disasters. His experience, across all industries, encompasses business interruption and lost profits claims, product liability, merger and acquisition disputes, reinsurance disputes, fraud investigations, class action lawsuits.
1 - Litigation Services Handbook [Seite 3]
2 - Contents [Seite 7]
3 - Preface [Seite 13]
4 - PART I: The Litigation Environment [Seite 17]
4.1 - Chapter 1 A Dispute Resolution Primer [Seite 19]
4.1.1 - 1.1 Introduction [Seite 20]
4.1.1.1 - (a) Rationale for the Book [Seite 20]
4.1.1.2 - (b) Expert Opinions and Admissibility: The Rules of the Road [Seite 20]
4.1.1.3 - (c) Role of the Financial Expert in Litigation [Seite 22]
4.1.1.4 - (d) Tasks Undertaken by Financial Experts [Seite 23]
4.1.2 - 1.2 The Civil Court System [Seite 23]
4.1.2.1 - (a) General Process [Seite 23]
4.1.2.2 - (b) Experts' Involvement in a Case [Seite 24]
4.1.2.3 - (c) Federal District Court System [Seite 24]
4.1.2.4 - (d) Federal Courts of Appeals [Seite 25]
4.1.2.5 - (e) U.S. Supreme Court [Seite 25]
4.1.2.6 - (f) Special Federal Courts [Seite 25]
4.1.2.7 - (g) State Courts [Seite 26]
4.1.2.8 - (h) Choice of Courts [Seite 26]
4.1.2.9 - (i) Applicable Rules Governing Litigation [Seite 27]
4.1.2.10 - (j) Alternative Dispute Resolution (ADR) [Seite 28]
4.1.3 - 1.3 The Legal Process [Seite 28]
4.1.3.1 - (a) Overview of a Lawsuit [Seite 28]
4.1.3.2 - (b) Legal Pleadings [Seite 28]
4.1.3.3 - (c) Discovery-Introduction [Seite 29]
4.1.3.4 - (d) Discovery-Written Reports [Seite 29]
4.1.3.5 - (e) Discovery-Interrogatories [Seite 30]
4.1.3.6 - (f) Discovery-Requests for Production of Documents [Seite 30]
4.1.3.7 - (g) Discovery-Requests for Admissions [Seite 31]
4.1.3.8 - (h) Discovery-Depositions [Seite 31]
4.1.3.9 - (i) Discovery-Subpoenas [Seite 32]
4.1.3.10 - (j) Trial [Seite 33]
4.1.3.11 - (k) Types of Outcomes [Seite 35]
4.1.3.12 - (l) Appeal [Seite 35]
4.1.4 - 1.4 The Alternative Dispute Resolution Process [Seite 36]
4.1.4.1 - (a) Definition and Overview [Seite 36]
4.1.4.2 - (b) Advantages and Disadvantages of ADR [Seite 37]
4.1.5 - 1.5 Forms of Alternative Dispute Resolution [Seite 38]
4.1.5.1 - (a) Arbitration [Seite 38]
4.1.5.2 - (b) Mediation [Seite 39]
4.1.5.3 - (c) Other Forms of ADR [Seite 40]
4.1.6 - 1.6 Domestic ADR [Seite 41]
4.1.6.1 - (a) Rules Governing the Use of ADR [Seite 41]
4.1.6.2 - (b) The Neutral [Seite 42]
4.1.6.3 - (c) The Role of Experts [Seite 43]
4.1.7 - 1.7 International Arbitration [Seite 44]
4.1.7.1 - (a) Differences from Domestic Arbitration [Seite 44]
4.1.7.2 - (b) Rules Governing International Arbitration [Seite 44]
4.1.7.3 - (c) Arbitral Institutions [Seite 45]
4.1.7.4 - (d) Arbitration with a State or Parastatal Entity [Seite 46]
4.1.7.5 - (e) The Tribunal [Seite 46]
4.1.7.6 - (f) The Role of Experts [Seite 46]
4.1.8 - 1.8 Conclusion [Seite 47]
4.1.9 - NOTES [Seite 48]
4.1.10 - REFERENCES [Seite 49]
4.2 - Chapter 2 Serving as a Financial Expert in Litigation [Seite 51]
4.2.1 - 2.1 Introduction [Seite 51]
4.2.1.1 - (a) Expert Services Provided by CPAs and Others [Seite 51]
4.2.1.2 - (b) Defining Expert Services [Seite 52]
4.2.2 - 2.2 Expert Services [Seite 52]
4.2.2.1 - (a) Typical Roles of the Expert [Seite 52]
4.2.2.2 - (b) Expert Services in the Litigation Environment [Seite 54]
4.2.2.3 - (c) Opinion Testimony [Seite 56]
4.2.3 - 2.3 Qualifications of Experts [Seite 57]
4.2.3.1 - (a) Skills Commonly Required of Experts [Seite 57]
4.2.4 - 2.4 Professional Guidance and Standards [Seite 58]
4.2.4.1 - (a) Guidelines for an Expert [Seite 58]
4.2.4.2 - (b) Professional Standards and Malpractice Concerns [Seite 62]
4.2.5 - 2.5 Logistics [Seite 63]
4.2.5.1 - (a) Fee Arrangements and Engagement Letters [Seite 63]
4.2.5.2 - (b) Work Papers [Seite 65]
4.2.6 - 2.6 Conclusion [Seite 65]
4.2.7 - NOTES [Seite 66]
4.3 - Chapter 3 Testimony Considerations [Seite 67]
4.3.1 - 3.1 Introduction [Seite 68]
4.3.2 - 3.2 Standards of Admissibility [Seite 68]
4.3.2.1 - (a) Pre-Daubert Standards [Seite 68]
4.3.2.2 - (b) The Daubert Trilogy [Seite 68]
4.3.2.3 - (c) Daubert's Impact at the State Court Level [Seite 70]
4.3.3 - 3.3 Trends in Daubert Challenges to Financial Experts [Seite 71]
4.3.4 - 3.4 Reliability [Seite 71]
4.3.4.1 - (a) Reliability of Data [Seite 72]
4.3.4.2 - (b) Reliability of Method [Seite 73]
4.3.4.3 - (c) Considerations for the Financial Expert [Seite 74]
4.3.5 - 3.5 Relevance [Seite 75]
4.3.5.1 - (a) Providing Lay Testimony [Seite 75]
4.3.5.2 - (b) Drawing Legal Conclusions [Seite 76]
4.3.5.3 - (c) Considerations for the Financial Expert [Seite 76]
4.3.6 - 3.6 Qualification [Seite 76]
4.3.6.1 - (a) Knowledge [Seite 77]
4.3.6.2 - (b) Skill and Experience [Seite 77]
4.3.6.3 - (c) Education and Training [Seite 78]
4.3.6.4 - (d) Considerations for the Financial Expert [Seite 78]
4.3.7 - 3.7 Conclusion [Seite 79]
4.3.8 - 3.8 The Art of the Testimony [Seite 79]
4.3.8.1 - (a) Getting Past the Gatekeeper [Seite 79]
4.3.8.2 - (b) Know Your Opponent's Case as Well as You Know Yours [Seite 80]
4.3.8.3 - (c) Live in the Details [Seite 81]
4.3.8.4 - (d) Gird Yourself for Testimony [Seite 81]
4.3.8.5 - (e) Exhibits [Seite 83]
4.3.8.6 - (f) Testimony Challenges [Seite 83]
4.3.8.7 - (g) Conclusion [Seite 87]
4.3.9 - NOTES [Seite 88]
4.3.10 - LIST OF CASES [Seite 89]
5 - PART II: Developing a Damages Analysis [Seite 91]
5.1 - Chapter 4 Damages Theories and Causation Issues [Seite 93]
5.1.1 - 4.1 Introduction [Seite 94]
5.1.2 - 4.2 Fundamentals of Causation [Seite 95]
5.1.2.1 - (a) Introduction to Causation [Seite 95]
5.1.2.2 - (b) Causation Fundamentals [Seite 96]
5.1.2.3 - (c) Negligence [Seite 96]
5.1.2.4 - (d) Common Law Fraud [Seite 99]
5.1.3 - 4.3 Other Legal Standards [Seite 100]
5.1.3.1 - (a) Reasonable Certainty [Seite 101]
5.1.3.2 - (b) Economic Loss Doctrine [Seite 101]
5.1.3.3 - (c) Proximate Cause [Seite 102]
5.1.3.4 - (d) Foreseeability [Seite 103]
5.1.3.5 - (e) Duty to Mitigate [Seite 103]
5.1.4 - 4.4 Damages Theory [Seite 103]
5.1.4.1 - (a) Compensatory (Expectation and Reliance) and Restitution Damages [Seite 104]
5.1.4.2 - (b) Comparing Benefit of the Bargain (Expectation), Reliance, and Restitution Approaches [Seite 107]
5.1.4.3 - (c) Punitive Damages [Seite 110]
5.1.4.4 - (d) Rescission or Rectification (or Reformation) [Seite 110]
5.1.4.5 - (e) Other Considerations [Seite 111]
5.1.5 - 4.5 Modeling Considerations [Seite 113]
5.1.5.1 - (a) Use of Averages and Indexes [Seite 113]
5.1.5.2 - (b) Use of Ranges [Seite 114]
5.1.5.3 - (c) Lost Profits versus Lost Business Value [Seite 114]
5.1.5.4 - (d) Time Considerations [Seite 116]
5.1.5.5 - (e) Causation [Seite 117]
5.1.5.6 - (f) Regression Analysis with Confidence Interval [Seite 117]
5.1.5.7 - (g) Monte Carlo Simulation [Seite 118]
5.1.5.8 - (h) Discounting [Seite 119]
5.1.5.9 - (i) Prejudgment Interest [Seite 119]
5.1.5.10 - (j) Damages for Different Types of Cases [Seite 120]
5.1.6 - 4.6 Developing an Effective Damages Claim [Seite 120]
5.1.6.1 - (a) Learn the Background [Seite 120]
5.1.6.2 - (b) Understand Causation and Its Effect [Seite 121]
5.1.6.3 - (c) Identify the Damages Theory [Seite 121]
5.1.6.4 - (d) Select the Damages Model [Seite 122]
5.1.6.5 - (e) Build the Damages Model-Lost Profits Scenario [Seite 122]
5.1.7 - 4.7 Practical Aspects of Expert Testimony on Damage Causation [Seite 130]
5.1.7.1 - (a) Admissibility of Expert Testimony [Seite 130]
5.1.7.2 - (b) Expert Testimony versus Fact Testimony [Seite 131]
5.1.7.3 - (c) Expert Sensitivity to Alternative Outcomes [Seite 132]
5.1.8 - 4.8 Conclusion [Seite 133]
5.1.9 - NOTES [Seite 133]
5.1.10 - LIST OF CASES [Seite 140]
5.1.11 - REFERENCES [Seite 144]
5.2 - Chapter 5 Ex Ante versus Ex Post Damages Calculations [Seite 147]
5.2.1 - 5.1 Introduction [Seite 147]
5.2.2 - 5.2 Expectancy versus Outcome Damages [Seite 148]
5.2.3 - 5.3 Application of the Ex Ante Approach in Litigation [Seite 149]
5.2.3.1 - (a) The Mechanics of Ex Ante Analyses [Seite 149]
5.2.3.2 - (b) The Debate [Seite 152]
5.2.4 - 5.4 Application of the Ex Post Approach in Litigation [Seite 153]
5.2.4.1 - (a) The Mechanics of Ex Post Analyses [Seite 153]
5.2.4.2 - (b) The Debate [Seite 155]
5.2.5 - 5.5 Hybrid Approach [Seite 156]
5.2.6 - 5.6 The Book of Wisdom [Seite 157]
5.2.7 - 5.7 The Wrongdoer's Rule [Seite 159]
5.2.8 - 5.8 Conclusion [Seite 160]
5.2.9 - APPENDIX: CASE LAW SUPPORTING EX ANTE AND EX POST ANALYSES [Seite 161]
5.2.10 - NOTES [Seite 167]
5.2.11 - LIST OF CASES [Seite 168]
5.2.12 - REFERENCES [Seite 169]
5.3 - Chapter 6 Use of Statistical Sampling in Litigation [Seite 171]
5.3.1 - 6.1 Introduction [Seite 171]
5.3.2 - 6.2 Sampling Theory [Seite 172]
5.3.2.1 - (a) Improved Precision versus Higher Cost [Seite 172]
5.3.2.2 - (b) Proportion of Population Sampled versus Randomness [Seite 173]
5.3.2.3 - (c) Sample Design-The Sampling Plan [Seite 174]
5.3.2.4 - (d) Sampling Methods [Seite 178]
5.3.2.5 - (e) Extrapolation [Seite 181]
5.3.3 - 6.3 Use of Sampling by Courts [Seite 183]
5.3.3.1 - (a) Health Care Industry Cases [Seite 183]
5.3.3.2 - (b) Cases Involving Other Industries [Seite 185]
5.3.3.3 - (c) Use of Sampling in the Discovery Process [Seite 190]
5.3.3.4 - (d) Issue of Admissibility [Seite 191]
5.3.4 - NOTES [Seite 191]
5.3.5 - LIST OF CASES [Seite 197]
5.3.6 - REFERENCES [Seite 197]
5.4 - Chapter 7 Survey Research in Litigation [Seite 199]
5.4.1 - 7.1 Introduction [Seite 199]
5.4.1.1 - (a) What Is a Survey? [Seite 200]
5.4.1.2 - (b) Reasons for Surveys in a Litigation Context [Seite 205]
5.4.1.3 - (c) The Admissibility of Surveys in Litigation [Seite 206]
5.4.1.4 - (d) The Role and Qualifications of the Expert [Seite 207]
5.4.1.5 - (e) The Total Survey Error Framework [Seite 209]
5.4.1.6 - (f) Cost-Benefit Trade-Offs in Survey Research [Seite 212]
5.4.2 - 7.2 Planning the Survey and Identifying Its Purpose [Seite 213]
5.4.3 - 7.3 Sample Design and Selection [Seite 215]
5.4.3.1 - (a) Probability versus Nonprobability Samples [Seite 215]
5.4.3.2 - (b) Target Population [Seite 216]
5.4.3.3 - (c) Sampling Frame [Seite 217]
5.4.3.4 - (d) Selection and Size of Sample [Seite 220]
5.4.4 - 7.4 Additional Considerations for Sampling Design [Seite 223]
5.4.4.1 - (a) Probability Samples [Seite 223]
5.4.4.2 - (b) Using Experimental Design Methods to Test Causal Hypotheses [Seite 225]
5.4.4.3 - (c) Unit Nonresponse [Seite 226]
5.4.4.4 - (d) Item Nonresponse [Seite 229]
5.4.5 - 7.5 Questionnaire Design [Seite 230]
5.4.5.1 - (a) Specification Error and Questionnaire-Related Measurement Error [Seite 230]
5.4.5.2 - (b) Screening for Eligible Respondents [Seite 231]
5.4.5.3 - (c) Respondent-Related Measurement Error [Seite 231]
5.4.5.4 - (d) Interviewer-Related Measurement Error [Seite 232]
5.4.6 - 7.6 Survey Mode (Data Collection) [Seite 233]
5.4.6.1 - (a) In-Person Mode [Seite 233]
5.4.6.2 - (b) Telephone Mode [Seite 234]
5.4.6.3 - (c) Mail Mode [Seite 235]
5.4.6.4 - (d) Interactive Voice Response Mode [Seite 236]
5.4.6.5 - (e) Internet Mode [Seite 237]
5.4.6.6 - (f) Mixed-Mode Surveys [Seite 238]
5.4.7 - 7.7 Postsurvey Adjustments [Seite 238]
5.4.7.1 - (a) Potential Data Errors [Seite 239]
5.4.7.2 - (b) Missing Data [Seite 239]
5.4.7.3 - (c) Weighting Survey Data [Seite 240]
5.4.7.4 - (d) Creating Additional Variables [Seite 241]
5.4.8 - 7.8 Survey Analysis [Seite 241]
5.4.9 - 7.9 Conclusion [Seite 243]
5.4.10 - NOTES [Seite 243]
5.5 - Chapter 8 Statistical Estimation of Incremental Cost from Accounting Data [Seite 251]
5.5.1 - 8.1 Introduction [Seite 252]
5.5.2 - 8.2 Basics [Seite 252]
5.5.3 - 8.3 Illustrative Examples [Seite 255]
5.5.3.1 - (a) Using Regression Analysis to Estimate Incremental Cost with a Single Cost Driver [Seite 255]
5.5.3.2 - (b) Using Regression Analysis to Estimate Incremental Cost with Multiple Cost Drivers [Seite 256]
5.5.4 - 8.4 Impediments to Incremental Cost Measurement Caused by Idiosyncrasies of Accounting Data [Seite 258]
5.5.4.1 - (a) Cost Behavior [Seite 258]
5.5.4.2 - (b) Unsuitability of Unadjusted General Ledger Data [Seite 259]
5.5.4.3 - (c) Additional Information Omitted in General Ledger Accounts [Seite 261]
5.5.5 - 8.5 Measurement Issues Arising in Regression Analysis of Accounting Data [Seite 261]
5.5.5.1 - (a) Inaccuracies Arising from Accounting Allocations [Seite 263]
5.5.5.2 - (b) Inaccuracies Arising from a Changing Incremental Cost [Seite 264]
5.5.5.3 - (c) Inaccuracies Arising from Multicollinearity [Seite 265]
5.5.5.4 - (d) Inaccuracies Arising from Missing Data and Outliers [Seite 265]
5.5.6 - 8.6 Detecting Flaws in a Regression Analysis of Accounting Data [Seite 265]
5.5.6.1 - (a) Informal Methods [Seite 265]
5.5.6.2 - (b) Formal Statistical Tests [Seite 266]
5.5.6.3 - (c) F-Test to Detect a Changing Incremental Cost [Seite 266]
5.5.6.4 - (d) Tests of Reasonableness [Seite 267]
5.5.7 - 8.7 Other Methods for Estimating Incremental Cost [Seite 267]
5.5.7.1 - (a) Account Analysis Method [Seite 267]
5.5.7.2 - (b) Engineering Method [Seite 267]
5.5.8 - 8.8 Conclusion [Seite 269]
5.5.9 - APPENDIX: COST TERMINOLOGY DISTINCTIONS AMONG TERMS CONTAINING THE WORD COST [Seite 270]
5.5.10 - NOTES [Seite 276]
5.6 - Chapter 9 Econometric Analysis [Seite 277]
5.6.1 - 9.1 Introduction [Seite 277]
5.6.2 - 9.2 The Role of Econometrics in Litigation [Seite 278]
5.6.3 - 9.3 A Regression Model [Seite 279]
5.6.4 - 9.4 Violation of Assumptions and Data Problems [Seite 281]
5.6.4.1 - (a) Multicollinearity [Seite 281]
5.6.4.2 - (b) Nonconstant Variance [Seite 283]
5.6.4.3 - (c) Autocorrelated Errors [Seite 286]
5.6.4.4 - (d) Problematic Models in Litigation [Seite 287]
5.6.4.5 - (e) Outliers [Seite 288]
5.6.5 - 9.5 Choice of Explanatory Variables [Seite 289]
5.6.5.1 - (a) Variable Selection [Seite 289]
5.6.5.2 - (b) Omitting a Relevant Variable [Seite 290]
5.6.5.3 - (c) Including an Irrelevant Variable [Seite 291]
5.6.6 - 9.6 Choice of Functional Form [Seite 292]
5.6.7 - 9.7 Sensitivity Testing of Estimated Results [Seite 294]
5.6.7.1 - (a) Chow Test for Different Subperiods [Seite 294]
5.6.7.2 - (b) Tests for Sensitivity of Model Parameters [Seite 295]
5.6.8 - 9.8 Attributes of a Good Model [Seite 297]
5.6.9 - 9.9 Choosing the Correct Significance Level [Seite 298]
5.6.10 - 9.10 Statistical versus Practical Significance [Seite 300]
5.6.11 - 9.11 R-Squared (R2) [Seite 300]
5.6.12 - 9.12 Forecasting and Residual Analysis [Seite 301]
5.6.13 - 9.13 Conclusion [Seite 302]
5.6.14 - APPENDIX [Seite 303]
5.6.15 - NOTES [Seite 335]
5.6.16 - LIST OF CASES [Seite 337]
5.6.17 - REFERENCES [Seite 337]
5.7 - Chapter 10 Estimating the Cost of Capital [Seite 339]
5.7.1 - 10.1 Introduction [Seite 339]
5.7.2 - 10.2 Opportunity Cost of Capital [Seite 340]
5.7.2.1 - (a) Risk-Free Rate of Interest (and Inflation) [Seite 341]
5.7.2.2 - (b) Default Risk [Seite 341]
5.7.2.3 - (c) Market Risk [Seite 342]
5.7.3 - 10.3 Theoretical Models of the Cost of Capital [Seite 343]
5.7.3.1 - (a) Capital Asset Pricing Model [Seite 343]
5.7.3.2 - (b) Tests of CAPM [Seite 345]
5.7.3.3 - (c) Three-Factor CAPM Model [Seite 347]
5.7.3.4 - (d) Arbitrage Pricing Theory [Seite 348]
5.7.3.5 - (e) Discounted Cash Flow (DCF) Model [Seite 349]
5.7.4 - 10.4 Estimating the Cost of Capital [Seite 350]
5.7.4.1 - (a) Estimating Equity Cost of Capital with Single-Factor CAPM [Seite 350]
5.7.4.2 - (b) Estimating Equity Cost of Capital with a Size-Adjusted CAPM [Seite 355]
5.7.4.3 - (c) WACC: Adjusting for Debt and Taxes [Seite 356]
5.7.4.4 - (d) Calculating Cost of Capital for Privately Held Companies [Seite 356]
5.7.4.5 - (e) Using Asset Betas [Seite 358]
5.7.5 - 10.5 Conclusion [Seite 359]
5.7.6 - NOTES [Seite 359]
5.7.7 - REFERENCES [Seite 362]
5.8 - Chapter 11 Business Valuation [Seite 365]
5.8.1 - 11.1 Business Valuation in Litigation Matters [Seite 366]
5.8.1.1 - (a) The Need for Valuation Experts [Seite 366]
5.8.1.2 - (b) Litigation Matters That Require Business Valuation [Seite 366]
5.8.1.3 - (c) Common Valuation Issues in Litigation Matters [Seite 366]
5.8.1.4 - (d) Value of Entire Business or Fractional Ownership Interest [Seite 368]
5.8.1.5 - (e) Quantitative and Qualitative Analysis [Seite 368]
5.8.2 - 11.2 Business Valuation Standards [Seite 368]
5.8.3 - 11.3 Understanding the Concept of Value [Seite 369]
5.8.3.1 - (a) Standards of Value [Seite 369]
5.8.3.2 - (b) Definitions [Seite 370]
5.8.3.3 - (c) Premise of Value [Seite 372]
5.8.4 - 11.4 Valuation Date [Seite 372]
5.8.4.1 - (a) Defining the Valuation Date [Seite 372]
5.8.4.2 - (b) Subsequent Events [Seite 372]
5.8.5 - 11.5 Overview of Valuation Approaches [Seite 373]
5.8.6 - 11.6 Income Approach [Seite 373]
5.8.6.1 - (a) Defining the Subject of the Business Valuation [Seite 374]
5.8.6.2 - (b) Valuing a Company's Equity [Seite 375]
5.8.6.3 - (c) Valuing the Firm [Seite 376]
5.8.6.4 - (d) The Cost of Capital [Seite 376]
5.8.6.5 - (e) Discounted Cash Flow Method [Seite 377]
5.8.6.6 - (f) Capitalization of Earnings Method [Seite 378]
5.8.6.7 - (g) Net Cash Flows [Seite 379]
5.8.6.8 - (h) Forecasting Growth [Seite 381]
5.8.6.9 - (i) Adjusted Present Value Method [Seite 384]
5.8.7 - 11.7 Market Approach [Seite 384]
5.8.7.1 - (a) Overview [Seite 384]
5.8.7.2 - (b) Methods under the Market Approach [Seite 385]
5.8.7.3 - (c) Price Multiples [Seite 386]
5.8.8 - 11.8 Asset-Based (or Cost) Approach [Seite 387]
5.8.8.1 - (a) Overview [Seite 387]
5.8.8.2 - (b) Identification and Valuation of Individual Assets and Liabilities [Seite 387]
5.8.8.3 - (c) Effect of Control on Value [Seite 388]
5.8.9 - 11.9 Valuation Adjustments [Seite 388]
5.8.9.1 - (a) The Reasons for Adjustments [Seite 388]
5.8.9.2 - (b) Valuation Adjustments for Control and Marketability [Seite 388]
5.8.9.3 - (c) Adjustments for Nonoperating Assets [Seite 389]
5.8.10 - 11.10 Lost Profits versus Lost Business Value [Seite 390]
5.8.11 - 11.11 Specialty Certifications and Applicable Standards in Valuation [Seite 391]
5.8.12 - APPENDIX: International Glossary of Business Valuation Terms [Seite 393]
5.8.13 - NOTES [Seite 399]
5.8.14 - REFERENCES [Seite 402]
5.9 - Chapter 12 Business Interruption Insurance Claims [Seite 403]
5.9.1 - 12.1 Introduction [Seite 404]
5.9.2 - 12.2 Overview of Business Interruption Insurance [Seite 405]
5.9.2.1 - (a) Property and Time Element Insurance [Seite 405]
5.9.2.2 - (b) Actual Loss Sustained [Seite 406]
5.9.2.3 - (c) Continuing and Noncontinuing Expenses [Seite 406]
5.9.2.4 - (d) Extra Expenses and Mitigating Expenses [Seite 407]
5.9.2.5 - (e) Extended Period of Indemnity [Seite 409]
5.9.2.6 - (f) Other Common Business Interruption Endorsements [Seite 409]
5.9.2.7 - (g) Inventory (Contents) Claims [Seite 409]
5.9.3 - 12.3 The Loss Adjustment and Claim Development Processes [Seite 411]
5.9.3.1 - (a) Players and Roles [Seite 411]
5.9.3.2 - (b) Beginning the Loss Adjustment Process [Seite 412]
5.9.3.3 - (c) Periodic Claim Updates to the Adjuster [Seite 412]
5.9.3.4 - (d) The Claim Development Process [Seite 413]
5.9.3.5 - (e) Presenting a Persuasive Claim [Seite 415]
5.9.3.6 - (f) Settlement [Seite 415]
5.9.4 - 12.4 Dispute Resolution in the Business Interruption Claim Process [Seite 416]
5.9.4.1 - (a) Loss Adjustment [Seite 416]
5.9.4.2 - (b) Negotiation [Seite 416]
5.9.4.3 - (c) Appraisal [Seite 416]
5.9.4.4 - (d) Alternative Dispute Resolution (ADR) [Seite 417]
5.9.4.5 - (e) Litigation [Seite 417]
5.9.5 - 12.5 Further Considerations for Experts [Seite 418]
5.9.6 - 12.6 Common Areas of Disputes Addressed by Financial Experts [Seite 418]
5.9.6.1 - (a) Period of Indemnity [Seite 418]
5.9.6.2 - (b) Base Periods [Seite 419]
5.9.6.3 - (c) Necessity of Costs Incurred and Ongoing Expenses [Seite 419]
5.9.6.4 - (d) Estimates of But-For Results [Seite 420]
5.9.6.5 - (e) Cause of Losses [Seite 420]
5.9.7 - 12.7 Unique Issues in the Litigated Claim [Seite 420]
5.9.7.1 - (a) Parallel Process of Loss Adjustment and Litigation [Seite 420]
5.9.7.2 - (b) Work-Product Privilege Issues and Considerations [Seite 420]
5.9.7.3 - (c) Documentation of the Loss versus the Discovery Process [Seite 421]
5.9.7.4 - (d) Fact and Expert Witness Roles [Seite 421]
5.9.8 - NOTES [Seite 421]
5.10 - Chapter 13 Lost Earnings of Persons [Seite 423]
5.10.1 - 13.1 Introduction [Seite 423]
5.10.2 - 13.2 Information Needed for Analysis [Seite 423]
5.10.2.1 - (a) Data Specific to the Case [Seite 424]
5.10.2.2 - (b) Data from Reference Sources [Seite 425]
5.10.3 - 13.3 Components of a Claim [Seite 426]
5.10.3.1 - (a) Earnings and Income Items [Seite 427]
5.10.4 - 13.4 Mitigating Factors and Offsets [Seite 431]
5.10.4.1 - (a) Actual or Mitigating Earnings [Seite 431]
5.10.4.2 - (b) Personal Consumption Expenditures [Seite 432]
5.10.4.3 - (c) Taxes [Seite 433]
5.10.5 - 13.5 Other Considerations [Seite 434]
5.10.5.1 - (a) Survival Action versus Wrongful Death Action [Seite 434]
5.10.5.2 - (b) Employee versus Self-Insured [Seite 435]
5.10.5.3 - (c) Lost Wages of Undocumented Workers [Seite 435]
5.10.5.4 - (d) Cases Involving Children [Seite 436]
5.10.5.5 - (e) Period of Loss [Seite 437]
5.10.5.6 - (f) Discounting Lost Earnings to Present Value [Seite 437]
5.10.6 - 13.6 Conclusion [Seite 438]
5.10.7 - NOTES [Seite 439]
5.10.8 - REFERENCES [Seite 441]
5.11 - Chapter 14 Expert Analysis of Class Certification Issues [Seite 443]
5.11.1 - 14.1 Introduction [Seite 443]
5.11.2 - 14.2 Rule 23 Requirements of a Class Action [Seite 444]
5.11.2.1 - (a) Rule 23(a) Requirements [Seite 444]
5.11.2.2 - (b) Rule 23(b) Requirements [Seite 446]
5.11.3 - 14.3 Legal Standards Governing Use of Expert Testimony during Class Certification [Seite 448]
5.11.4 - 14.4 Expert Witness Roles Related to Class Certification [Seite 448]
5.11.4.1 - (a) Expert Analysis Related to Numerosity [Seite 448]
5.11.4.2 - (b) Evaluating Whether a Common Method Exists [Seite 448]
5.11.4.3 - (c) Establishing Harm [Seite 451]
5.11.4.4 - (d) Evaluating Whether All Class Members Suffered Harm [Seite 453]
5.11.4.5 - (e) Identifying Conflicts of Interest [Seite 455]
5.11.4.6 - (f) Ability to Calculate Class Member Damages [Seite 456]
5.11.4.7 - (g) Assessing Named Plaintiffs' Adequacy and Typicality [Seite 457]
5.11.4.8 - (h) Evaluating Whether the Class Is Ascertainable [Seite 457]
5.11.4.9 - (i) Data Reliability [Seite 457]
5.11.5 - 14.5 Conclusion [Seite 458]
5.11.6 - NOTES [Seite 458]
5.11.7 - LIST OF CASES [Seite 464]
5.11.8 - REFERENCES [Seite 466]
6 - PART III: Litigation Tools and Techniques [Seite 467]
6.1 - Chapter 15 Data Management [Seite 469]
6.1.1 - 15.1 Introduction [Seite 470]
6.1.1.1 - (a) Discovery Management [Seite 470]
6.1.1.2 - (b) Federal Rules 16, 26, 34, and 37: General Provisions Regarding Discovery [Seite 471]
6.1.1.3 - (c) Insourcing [Seite 472]
6.1.1.4 - (d) Managed Services [Seite 473]
6.1.2 - 15.2 Data Preservation [Seite 473]
6.1.2.1 - (a) Legal Hold Notices and Management [Seite 473]
6.1.2.2 - (b) Litigation Response and Data Maps [Seite 475]
6.1.2.3 - (c) The Value of Email [Seite 476]
6.1.2.4 - (d) Email and File Servers [Seite 477]
6.1.2.5 - (e) Email Archives [Seite 478]
6.1.2.6 - (f) Custodian Personal Computers (PCs) and Mobile Devices [Seite 478]
6.1.2.7 - (g) Enterprise Resource Planning (ERP) Applications and Related Financial Accounting Databases [Seite 479]
6.1.2.8 - (h) Backup Tapes [Seite 480]
6.1.2.9 - (i) Social Media [Seite 481]
6.1.2.10 - (j) Hard Copy [Seite 481]
6.1.3 - 15.3 Data Collection [Seite 482]
6.1.3.1 - (a) Data Privacy [Seite 482]
6.1.3.2 - (b) Chain of Custody [Seite 482]
6.1.3.3 - (c) Types of Collection [Seite 482]
6.1.4 - 15.4 Data Normalization and Processing [Seite 485]
6.1.4.1 - (a) Email and User Documents [Seite 485]
6.1.4.2 - (b) Enterprise Applications and Databases [Seite 486]
6.1.5 - 15.5 Analysis of Email and Electronic Documents [Seite 489]
6.1.5.1 - (a) Understanding the Data [Seite 489]
6.1.5.2 - (b) Filtering and Email Analytics [Seite 491]
6.1.5.3 - (c) Email Review [Seite 494]
6.1.6 - 15.6 Analysis of Databases and Enterprise Applications [Seite 497]
6.1.6.1 - (a) Trending [Seite 497]
6.1.6.2 - (b) Relation Mapping [Seite 497]
6.1.6.3 - (c) Classification and Modeling Analysis: Decision Trees [Seite 497]
6.1.6.4 - (d) Analysis Validation [Seite 498]
6.1.7 - 15.7 Productions [Seite 498]
6.1.7.1 - (a) Email and Electronic Documents [Seite 498]
6.1.7.2 - (b) Databases and Enterprise Applications [Seite 499]
6.1.8 - 15.8 Final Steps [Seite 500]
6.1.9 - NOTES [Seite 500]
7 - PART IV: Ancillary Issues In Damages Matters [Seite 503]
7.1 - Chapter 16 Prejudgment Interest [Seite 505]
7.1.1 - 16.1 Introduction [Seite 505]
7.1.2 - 16.2 The Problem [Seite 507]
7.1.3 - 16.3 Which Interest Rate? The Defendant's Cost of Unsecured Borrowing [Seite 507]
7.1.3.1 - (a) Alternative Rates Do Not Properly Compensate Plaintiffs [Seite 509]
7.1.3.2 - (b) Recent Criticisms of the Coerced Loan Theory Are Unpersuasive [Seite 511]
7.1.4 - 16.4 Awarding Prejudgment Interest at a Floating Interest Rate [Seite 512]
7.1.5 - 16.5 Estimating the Defendant's Unsecured Floating Borrowing Rate [Seite 513]
7.1.6 - 16.6 Computing the Multiplier [Seite 515]
7.1.6.1 - (a) The Prejudgment Period [Seite 515]
7.1.6.2 - (b) Choice of Compounding Period [Seite 515]
7.1.7 - 16.7 A Note on Delaware Law [Seite 516]
7.1.8 - 16.8 Other Issues in the Calculation of Prejudgment Interest [Seite 516]
7.1.8.1 - (a) Adjusting the Multiplier for Taxes [Seite 516]
7.1.8.2 - (b) Multiple Defendants [Seite 518]
7.1.8.3 - (c) Currency Conversion [Seite 519]
7.1.8.4 - (d) Payment for Subsequent Harms [Seite 519]
7.1.9 - 16.9 Close Corporations and Individual Plaintiffs [Seite 520]
7.1.10 - 16.10 Conclusion [Seite 521]
7.1.11 - NOTES [Seite 521]
7.1.12 - LIST OF CASES [Seite 524]
7.1.13 - REFERENCES [Seite 524]
7.2 - Chapter 17 Punitive Damages [Seite 527]
7.2.1 - 17.1 Introduction [Seite 527]
7.2.2 - 17.2 Basic Issues Arising in a Punitive Damages Action [Seite 528]
7.2.3 - 17.3 The Expert's Role [Seite 529]
7.2.3.1 - (a) Identification of the Party to Be Punished: Corporate Identity [Seite 529]
7.2.3.2 - (b) Relevant Financial Information [Seite 531]
7.2.3.3 - (c) Product or Venture Profitability [Seite 532]
7.2.3.4 - (d) Degree of Harm Caused to the Plaintiff [Seite 533]
7.2.3.5 - (e) Awards for Large Classes and Multiple Awards for the Same Act [Seite 533]
7.2.3.6 - (f) Comparable Statutory Penalties [Seite 534]
7.2.3.7 - (g) Insurance [Seite 534]
7.2.3.8 - (h) Tax Treatment of Punitive Damages [Seite 535]
7.2.3.9 - (i) Summary [Seite 535]
7.2.4 - 17.4 Legal Guidance on Punitive Damages [Seite 535]
7.2.4.1 - (a) U.S. Supreme Court Decisions [Seite 535]
7.2.4.2 - (b) Post-State Farm Punitive Damages Decisions [Seite 542]
7.2.4.3 - (c) State Court Decisions [Seite 542]
7.2.4.4 - (d) Lower Federal Court Decisions [Seite 544]
7.2.4.5 - (e) Differences among State Laws [Seite 547]
7.2.5 - 17.5 Conclusion [Seite 549]
7.2.6 - NOTES [Seite 549]
7.2.7 - LIST OF CASES [Seite 552]
7.2.8 - REFERENCES [Seite 553]
7.3 - Chapter 18 Tax Treatment of Damages Awards [Seite 555]
7.3.1 - 18.1 Introduction [Seite 555]
7.3.2 - 18.2 Origin of the Claim Test [Seite 556]
7.3.3 - 18.3 Substantiating Tax Treatment [Seite 557]
7.3.4 - 18.4 Tax Treatment by Type of Claim [Seite 558]
7.3.4.1 - (a) Physical Personal Injuries [Seite 558]
7.3.4.2 - (b) Nonphysical Personal Injuries [Seite 560]
7.3.4.3 - (c) Commercial Damages [Seite 561]
7.3.5 - 18.5 Structured Settlements [Seite 562]
7.3.6 - 18.6 Tax Treatment of Payments by Payor [Seite 563]
7.3.6.1 - (a) Business Expenses under IRC § 162 [Seite 563]
7.3.6.2 - (b) Production of Income Expenses under IRC § 212 [Seite 564]
7.3.6.3 - (c) Fines and Penalties [Seite 564]
7.3.6.4 - (d) Expensing or Capitalizing [Seite 565]
7.3.7 - 18.7 Deduction of Legal Fees [Seite 565]
7.3.7.1 - (a) Legal Fees Unrelated to Contingency [Seite 565]
7.3.7.2 - (b) Contingent Legal Fees [Seite 565]
7.3.8 - 18.8 Conclusion [Seite 566]
7.3.9 - NOTES [Seite 566]
7.3.10 - LIST OF CASES [Seite 568]
7.3.11 - REFERENCES [Seite 569]
8 - PART V: Civil Litigation [Seite 571]
8.1 - Intellectual Property [Seite 571]
8.1.1 - Chapter 19 Economic Analysis of Nonpatent Intellectual Property Rights and Damages Measures [Seite 573]
8.1.1.1 - 19.1 Introduction [Seite 574]
8.1.1.2 - 19.2 Main Forms of Nonpatent Intellectual Property Rights [Seite 574]
8.1.1.2.1 - (a) Copyrights [Seite 574]
8.1.1.2.2 - (b) Trademarks [Seite 577]
8.1.1.2.3 - (c) Trade Secrets [Seite 580]
8.1.1.3 - 19.3 General Damages Measurement Issues in Nonpatent Intellectual Property Cases [Seite 582]
8.1.1.3.1 - (a) Injuries to Owners of Intellectual Property [Seite 582]
8.1.1.3.2 - (b) Running Royalty versus Lump-Sum Royalty [Seite 584]
8.1.1.3.3 - (c) Reasonable Royalty versus Lost Profits [Seite 585]
8.1.1.3.4 - (d) Calculating Sales in the But-For World [Seite 586]
8.1.1.3.5 - (e) Unjust Enrichment [Seite 586]
8.1.1.3.6 - (f) Monopoly, Oligopoly, and Game Theory [Seite 587]
8.1.1.4 - 19.4 How Nonpatent Intellectual Property Damages Differ from Patent Damages [Seite 588]
8.1.1.4.1 - (a) Claiming the Infringer's Profits [Seite 588]
8.1.1.4.2 - (b) Owner's Burden of Proof [Seite 589]
8.1.1.4.3 - (c) Apportionment of Infringer's Profits [Seite 589]
8.1.1.4.4 - (d) Lack of Damages Floor [Seite 590]
8.1.1.4.5 - (e) Use of Nonmonetary Remedies [Seite 590]
8.1.1.4.6 - (f) The Absence of Paradigm Decisions [Seite 591]
8.1.1.5 - 19.5 Damages Issues Specific to Copyright Infringement [Seite 591]
8.1.1.5.1 - (a) Damages to the Copyright Owner [Seite 592]
8.1.1.5.2 - (b) Infringer's Profits (or Unjust Enrichment) [Seite 593]
8.1.1.5.3 - (c) Statutory Damages [Seite 597]
8.1.1.5.4 - (d) Other Remedies [Seite 598]
8.1.1.6 - 19.6 Damages Issues Specific to Trademark Infringement and False Advertising [Seite 598]
8.1.1.6.1 - (a) Standards for Injunctive Relief and Monetary Recovery [Seite 599]
8.1.1.6.2 - (b) Calculating Damages (Owner's Lost Profits) [Seite 599]
8.1.1.6.3 - (c) Calculating the Infringer's Profits [Seite 602]
8.1.1.6.4 - (d) Statutory Damages and Other Remedies [Seite 605]
8.1.1.7 - 19.7 Damages Issues Specific to Trade Secrets [Seite 606]
8.1.1.7.1 - (a) Standards for Injunctive Relief and Monetary Recovery [Seite 606]
8.1.1.7.2 - (b) Calculating the Owner's Damages [Seite 607]
8.1.1.7.3 - (c) Calculating the Infringer's Profits [Seite 607]
8.1.1.7.4 - (d) Reasonable Royalty and Punitive Damages [Seite 607]
8.1.1.8 - 19.8 Conclusion [Seite 608]
8.1.1.9 - APPENDIX: COMPARISON OF INTELLECTUAL PROPERTY REMEDIES [Seite 609]
8.1.1.10 - NOTES [Seite 616]
8.1.1.11 - LIST OF CASES [Seite 625]
8.1.1.12 - REFERENCES [Seite 628]
8.1.2 - Chapter 20 Patent Infringement Damages [Seite 631]
8.1.2.1 - 20.1 Patents [Seite 632]
8.1.2.2 - 20.2 Patent Damages [Seite 633]
8.1.2.2.1 - (a) Section 284: Damages [Seite 633]
8.1.2.2.2 - (b) Section 289: Additional Remedy for Infringement of Design Patent [Seite 634]
8.1.2.2.3 - (c) Sections 154 and 173: Term of the Patent [Seite 634]
8.1.2.2.4 - (d) Section 286: Time Limitation on Damages [Seite 634]
8.1.2.2.5 - (e) Section 287: Limitation on Damages and Other Remedies [Seite 635]
8.1.2.2.6 - (f) Section 271(f): Foreign Sales of Components Supplied from the United States [Seite 635]
8.1.2.3 - 20.3 Causation [Seite 635]
8.1.2.4 - 20.4 Current Patent Infringement Damages Environment [Seite 635]
8.1.2.5 - 20.5 Lost Profits Damages [Seite 637]
8.1.2.5.1 - (a) Evolution of the Law [Seite 637]
8.1.2.5.2 - (b) Panduit [Seite 637]
8.1.2.5.3 - (c) Market Share Approach [Seite 639]
8.1.2.5.4 - (d) Estimating Lost Sales [Seite 640]
8.1.2.5.5 - (e) Accelerated Reentry Damages [Seite 644]
8.1.2.5.6 - (f) Estimating Costs [Seite 644]
8.1.2.6 - 20.6 Reasonable Royalty [Seite 645]
8.1.2.6.1 - (a) Case Law Guidelines [Seite 645]
8.1.2.6.2 - (b) Ascertaining a Reasonable Royalty [Seite 645]
8.1.2.6.3 - (c) The Hypothetical Negotiation [Seite 646]
8.1.2.6.4 - (d) The Infringer's Next Best Available Alternative [Seite 647]
8.1.2.6.5 - (e) The Time of the Negotiation [Seite 648]
8.1.2.6.6 - (f) Advantages and Disadvantages of Licensing [Seite 649]
8.1.2.6.7 - (g) Similar Licenses: Patentee and Licensee [Seite 650]
8.1.2.6.8 - (h) Commercial Considerations [Seite 654]
8.1.2.6.9 - (i) Effect on Sales of Other Products [Seite 655]
8.1.2.6.10 - (j) Established Profitability of the Patented Product [Seite 656]
8.1.2.6.11 - (k) Utility, Advantages, and Benefit [Seite 658]
8.1.2.6.12 - (l) Value of the Invention to the Infringer [Seite 659]
8.1.2.6.13 - (m) Customary Division of Profit [Seite 659]
8.1.2.6.14 - (n) Profit Attribution [Seite 661]
8.1.2.6.15 - (o) Expert Testimony [Seite 662]
8.1.2.7 - 20.7 Royalty Base [Seite 663]
8.1.2.8 - 20.8 Dual Awards [Seite 663]
8.1.2.9 - 20.9 Entire Market Value Rule (EMVR) [Seite 664]
8.1.2.9.1 - (a) EMVR and Apportionment [Seite 665]
8.1.2.9.2 - (b) Convoyed Sales: Lost Profits Damages [Seite 666]
8.1.2.9.3 - (c) Convoyed Sales: Reasonable Royalty Damages [Seite 667]
8.1.2.10 - 20.10 Fair, Reasonable, and Non-Discriminatory (FRAND) [Seite 668]
8.1.2.11 - 20.11 Process or Method Patents [Seite 669]
8.1.2.12 - 20.12 Design Patents [Seite 670]
8.1.2.13 - 20.13 Interest on Damages [Seite 671]
8.1.2.14 - 20.14 Injunctive Relief [Seite 671]
8.1.2.15 - 20.15 Guidance [Seite 672]
8.1.2.16 - NOTES [Seite 673]
8.1.2.17 - LIST OF CASES [Seite 676]
8.1.2.18 - REFERENCES [Seite 678]
8.1.3 - Chapter 21 Role of Financial Experts in ITC Section 337 Investigations [Seite 679]
8.1.3.1 - 21.1 Introduction [Seite 679]
8.1.3.2 - 21.2 Basis for a Section 337 Violation [Seite 681]
8.1.3.2.1 - (a) Importation [Seite 681]
8.1.3.2.2 - (b) Injury [Seite 681]
8.1.3.2.3 - (c) Discovery [Seite 682]
8.1.3.2.4 - (d) Domestic Industry-Technical Prong [Seite 682]
8.1.3.2.5 - (e) Domestic Industry-Economic Prong [Seite 683]
8.1.3.3 - 21.3 Types of Remedies Available [Seite 686]
8.1.3.4 - 21.4 Establishing the Correct Remedy [Seite 688]
8.1.3.4.1 - (a) Limited Exclusion Order [Seite 688]
8.1.3.4.2 - (b) General Exclusion Order [Seite 690]
8.1.3.4.3 - (c) The Public Interest Factors [Seite 693]
8.1.3.5 - 21.5 Conclusion [Seite 694]
8.1.3.6 - NOTES [Seite 694]
8.1.4 - Chapter 22 Calculating Infringer's Profits in "SOFT" INTELLECTUAL PROPERTY DISPUTES: Trademark, Copyright, and Design Patent Cases [Seite 699]
8.1.4.1 - 22.1 Introduction [Seite 699]
8.1.4.2 - 22.2 The Relevant Profit Component of Economic Damages [Seite 701]
8.1.4.2.1 - (a) Trademarks and Service Marks [Seite 701]
8.1.4.2.2 - (b) Copyrights [Seite 702]
8.1.4.2.3 - (c) Design Patents [Seite 702]
8.1.4.3 - 22.3 Costs and Cost Behavior [Seite 703]
8.1.4.3.1 - (a) Costs [Seite 703]
8.1.4.3.2 - (b) Cost Behavior [Seite 705]
8.1.4.4 - 22.4 Different Measures of Profit [Seite 706]
8.1.4.4.1 - (a) Incremental Profit [Seite 706]
8.1.4.4.2 - (b) Hybrid Profits [Seite 706]
8.1.4.4.3 - (c) Operating Profits [Seite 706]
8.1.4.4.4 - (d) Net Profit [Seite 706]
8.1.4.5 - 22.5 Case Law Related to Profit Calculations [Seite 706]
8.1.4.5.1 - (a) Second Circuit [Seite 707]
8.1.4.5.2 - (b) Fourth Circuit [Seite 707]
8.1.4.5.3 - (c) Ninth Circuit [Seite 708]
8.1.4.5.4 - (d) Fifth Circuit [Seite 708]
8.1.4.5.5 - (e) Seventh Circuit [Seite 708]
8.1.4.5.6 - (f) Eleventh Circuit [Seite 709]
8.1.4.6 - 22.6 Nexus Requirements [Seite 709]
8.1.4.7 - 22.7 Conclusion [Seite 710]
8.1.4.8 - NOTES [Seite 711]
8.1.5 - Chapter 23 Royalty Audits and Contract Compliance Investigations [Seite 713]
8.1.5.1 - 23.1 Introduction [Seite 714]
8.1.5.2 - 23.2 Rights Commonly Subjected to Contract Compliance Investigations [Seite 715]
8.1.5.2.1 - (a) Intellectual Property Royalties and License Fees [Seite 715]
8.1.5.2.2 - (b) Other Contingent Compensation Arrangements [Seite 715]
8.1.5.2.3 - (c) Construction, Design, and Commercial Overhead Costs [Seite 715]
8.1.5.2.4 - (d) Development, Distribution, and Marketing Agreements [Seite 716]
8.1.5.2.5 - (e) Most Favored Nations Provisions [Seite 716]
8.1.5.3 - 23.3 Reasons for Contract Compliance Investigations [Seite 716]
8.1.5.4 - 23.4 Comparing Contract Compliance Investigations and Financial Statement Audits [Seite 717]
8.1.5.4.1 - (a) Basis of Accounting [Seite 717]
8.1.5.4.2 - (b) Professional Standards [Seite 717]
8.1.5.4.3 - (c) Materiality Concerns [Seite 718]
8.1.5.4.4 - (d) Scope of Activity Tested [Seite 718]
8.1.5.5 - 23.5 Overview of Stages of Contract Compliance [Seite 718]
8.1.5.6 - 23.6 Planning [Seite 719]
8.1.5.6.1 - (a) Reviewing Documents Retained by Grantor [Seite 719]
8.1.5.6.2 - (b) Additional Research [Seite 720]
8.1.5.6.3 - (c) Identifying Concerns from Grantor and Counsel [Seite 721]
8.1.5.6.4 - (d) Identifying Investigation Risks [Seite 721]
8.1.5.6.5 - (e) Identifying Initial Work Program Steps [Seite 721]
8.1.5.6.6 - (f) Initiating Communications with Grantee [Seite 722]
8.1.5.7 - 23.7 Fieldwork [Seite 722]
8.1.5.7.1 - (a) Grantee Personnel Interviews [Seite 723]
8.1.5.7.2 - (b) Grantee's Readiness for Fieldwork [Seite 723]
8.1.5.7.3 - (c) Reliability of Grantee's Documents [Seite 724]
8.1.5.7.4 - (d) Sales Transactions [Seite 724]
8.1.5.7.5 - (e) Subdistributor and Affiliate Sales [Seite 727]
8.1.5.7.6 - (f) Sales Discounts and Other Deductions [Seite 727]
8.1.5.7.7 - (g) Software Unit Deployment [Seite 728]
8.1.5.7.8 - (h) Returns and Price Protection [Seite 728]
8.1.5.7.9 - (i) Expense Transactions [Seite 729]
8.1.5.7.10 - (j) Contingent Compensation Rates [Seite 731]
8.1.5.7.11 - (k) Barter Transactions [Seite 731]
8.1.5.7.12 - (l) Foreign Currency Translations [Seite 732]
8.1.5.7.13 - (m) Foreign Tax Withholdings and Tax Credits [Seite 732]
8.1.5.7.14 - (n) Nonmonetary Issues [Seite 732]
8.1.5.7.15 - (o) Extrapolation of Findings [Seite 733]
8.1.5.7.16 - (p) Scope Limitations [Seite 733]
8.1.5.7.17 - (q) Accounting Conclusions versus Contractual Interpretations [Seite 734]
8.1.5.7.18 - (r) Communication with the Grantor during Fieldwork [Seite 734]
8.1.5.7.19 - (s) Most Favored Nations Investigation [Seite 734]
8.1.5.7.20 - (t) Investigation within a Litigation Context [Seite 735]
8.1.5.8 - 23.8 Reporting [Seite 735]
8.1.5.8.1 - (a) Identify Scope of Work [Seite 735]
8.1.5.8.2 - (b) Identify Unresolved Issues and Scope Limitations [Seite 735]
8.1.5.8.3 - (c) Calculate Monetary Findings [Seite 735]
8.1.5.8.4 - (d) Identify Nonmonetary and Other Findings [Seite 736]
8.1.5.8.5 - (e) Communicate with Grantee before Issuing Report [Seite 736]
8.1.5.8.6 - (f) Resolve Prelitigation Claims [Seite 737]
8.1.5.8.7 - (g) Consider Specific Industry Risks [Seite 737]
8.1.5.9 - 23.9 Conclusion [Seite 739]
8.1.5.10 - NOTES [Seite 739]
8.2 - Ownership and Business Failure [Seite 741]
8.2.1 - Chapter 24 Merger and Acquisition Transaction Disputes [Seite 743]
8.2.1.1 - 24.1 Introduction [Seite 744]
8.2.1.2 - 24.2 Overview of the Merger and Acquisition Transaction Life Cycle [Seite 744]
8.2.1.3 - 24.3 Current Transaction Market Perspectives [Seite 745]
8.2.1.4 - 24.4 Contract Provisions with Potential Accounting, Financial Reporting, and Purchase Price Significance [Seite 746]
8.2.1.4.1 - (a) Post-Closing Purchase Price Adjustments [Seite 746]
8.2.1.4.2 - (b) Earn-Out Clauses [Seite 747]
8.2.1.4.3 - (c) Governing Accounting Guidance [Seite 748]
8.2.1.4.4 - (d) Representations and Warranties [Seite 749]
8.2.1.4.5 - (e) Covenants [Seite 750]
8.2.1.4.6 - (f) Indemnification [Seite 751]
8.2.1.4.7 - (g) Material Adverse Change (MAC) [Seite 751]
8.2.1.4.8 - (h) Closing Mechanisms-Trend from Completion Accounts to Locked Box [Seite 752]
8.2.1.4.9 - (i) Dispute Resolution [Seite 753]
8.2.1.5 - 24.5 Common Merger and Acquisition Transaction Disputes [Seite 756]
8.2.1.5.1 - (a) Disputes Related to Post-Closing Adjustments [Seite 756]
8.2.1.5.2 - (b) Disputes Related to Earn-Out Clauses [Seite 762]
8.2.1.5.3 - (c) Accounts Related to Post-Close Transaction Disputes [Seite 765]
8.2.1.5.4 - (d) Issues of Control [Seite 765]
8.2.1.5.5 - (e) Representations and Warranties [Seite 766]
8.2.1.5.6 - (f) Material Adverse Change Disputes [Seite 766]
8.2.1.6 - 24.6 Typical Dispute Resolution Process [Seite 767]
8.2.1.6.1 - (a) Engagement of Arbitrator, Terms of Engagement, and Timeline [Seite 767]
8.2.1.6.2 - (b) Initial and Rebuttal Submissions [Seite 769]
8.2.1.6.3 - (c) Questions and Answers [Seite 769]
8.2.1.6.4 - (d) Hearing [Seite 769]
8.2.1.6.5 - (e) Other Considerations [Seite 770]
8.2.1.6.6 - (f) Determination Letter-Final and Legally Binding [Seite 770]
8.2.1.6.7 - (g) Costs of Dispute Resolution [Seite 771]
8.2.1.6.8 - (h) Need for Independence and Objectivity [Seite 771]
8.2.1.7 - 24.7 Role of Accountants in Merger and Acquisition Transactions and Disputes [Seite 771]
8.2.1.7.1 - (a) Considerations When Engaging an Accounting Expert [Seite 772]
8.2.1.7.2 - (b) Dispute Avoidance [Seite 772]
8.2.1.7.3 - (c) Negotiation Assistance (Pre-Formal Dispute) [Seite 774]
8.2.1.7.4 - (d) Interaction with Counsel [Seite 774]
8.2.1.7.5 - (e) Dispute Strategy and Formulation [Seite 774]
8.2.1.7.6 - (f) Discovery Assistance [Seite 775]
8.2.1.7.7 - (g) Expert Report Preparation [Seite 775]
8.2.1.7.8 - (h) Dispute Negotiation Assistance-Arbitration, Settlement, Litigation [Seite 776]
8.2.1.7.9 - (i) Trial Preparation and Testimony [Seite 776]
8.2.1.7.10 - (j) Independent Neutral Role in Arbitration [Seite 776]
8.2.1.7.11 - (k) Independence Considerations [Seite 777]
8.2.1.8 - 24.8 Conclusion [Seite 777]
8.2.1.9 - NOTES [Seite 777]
8.2.2 - Chapter 25 The Troubled Business and Bankruptcy [Seite 779]
8.2.2.1 - 25.1 Introduction [Seite 780]
8.2.2.2 - 25.2 Bankruptcy: An Overview [Seite 781]
8.2.2.2.1 - (a) Out-of-Court Settlements [Seite 781]
8.2.2.2.2 - (b) Assignment for Benefit of Creditors [Seite 782]
8.2.2.2.3 - (c) Bankruptcy Code Protection [Seite 783]
8.2.2.2.4 - (d) The Bankruptcy Code and the Bankruptcy Court [Seite 784]
8.2.2.2.5 - (e) Commencement of Case [Seite 788]
8.2.2.2.6 - (f) The Automatic Stay [Seite 788]
8.2.2.2.7 - (g) Cash Collateral [Seite 789]
8.2.2.2.8 - (h) Debtor-in-Possession Financing [Seite 790]
8.2.2.2.9 - (i) Adequate Protection [Seite 790]
8.2.2.2.10 - (j) Filing Schedules and the Statement of Affairs [Seite 790]
8.2.2.2.11 - (k) Employment of Professionals [Seite 791]
8.2.2.2.12 - (l) Debtor-in-Possession [Seite 792]
8.2.2.2.13 - (m) Creditors' and Equity Security Holders' Committees [Seite 792]
8.2.2.2.14 - (n) Trustee and Examiner [Seite 792]
8.2.2.2.15 - (o) Financial Reporting Considerations before, during, and after Bankruptcy [Seite 793]
8.2.2.2.16 - (p) Filing Operating Reports [Seite 793]
8.2.2.2.17 - (q) Proofs of Claims or Interests [Seite 793]
8.2.2.2.18 - (r) Conversion or Dismissal of Bankruptcy Petition [Seite 794]
8.2.2.2.19 - (s) Classification and Priorities of Claims and Interests [Seite 794]
8.2.2.2.20 - (t) Preferences, Fraudulent Transfers, and Other Voidable Transfers [Seite 795]
8.2.2.2.21 - (u) Discharge of Debts [Seite 797]
8.2.2.2.22 - (v) Plan of Reorganization [Seite 797]
8.2.2.2.23 - (w) Disclosure Statement [Seite 799]
8.2.2.2.24 - (x) Acceptance or Rejection of the Plan [Seite 800]
8.2.2.2.25 - (y) Confirming the Plan, Cram Down, and Cram Up [Seite 800]
8.2.2.2.26 - (z) Post-Confirmation Activities [Seite 800]
8.2.2.3 - 25.3 Typical Roles of a Financial Expert in Bankruptcy Litigation [Seite 801]
8.2.2.3.1 - (a) Fact-Finding Investigations [Seite 801]
8.2.2.3.2 - (b) Plan Feasibility and Plan Confirmation Proceedings [Seite 802]
8.2.2.3.3 - (c) Recovery Actions [Seite 805]
8.2.2.3.4 - (d) Alter Ego [Seite 809]
8.2.2.4 - 25.4 Bankruptcy Court Litigation versus Civil Litigation [Seite 809]
8.2.2.5 - 25.5 Conclusion [Seite 810]
8.2.2.6 - NOTES [Seite 810]
8.2.2.7 - REFERENCES [Seite 811]
8.2.3 - Chapter 26 Alter Ego [Seite 813]
8.2.3.1 - 26.1 Definition of Alter Ego [Seite 813]
8.2.3.1.1 - (a) Legal Doctrine [Seite 813]
8.2.3.1.2 - (b) Equitable Remedy [Seite 814]
8.2.3.1.3 - (c) Mixed Questions of Law and Facts [Seite 815]
8.2.3.2 - 26.2 Typical Scenarios Involving Alter Ego [Seite 817]
8.2.3.2.1 - (a) Parent or Subsidiary Is Judgment-Proof [Seite 817]
8.2.3.2.2 - (b) Corporation Is Judgment-Proof but Individual Equity Owners Are Not [Seite 817]
8.2.3.2.3 - (c) Plaintiff's Confusion Regarding Corporate Identity [Seite 817]
8.2.3.2.4 - (d) Corporation Sells Assets, Leaving Insufficient Capital [Seite 818]
8.2.3.3 - 26.3 Indicia of Alter Ego [Seite 818]
8.2.3.3.1 - (a) Financial Dependence [Seite 818]
8.2.3.3.2 - (b) Confusion Regarding Corporate Identity [Seite 822]
8.2.3.3.3 - (c) Lack of Separateness [Seite 822]
8.2.3.3.4 - (d) Domination and Control [Seite 824]
8.2.3.3.5 - (e) Wrong or Injustice [Seite 827]
8.2.3.4 - 26.4 Limited Liability Entities (Limited Liability Corporations and S Corporations) [Seite 828]
8.2.3.5 - 26.5 Role of the Financial Expert in Alter Ego Analysis [Seite 829]
8.2.3.5.1 - (a) Dealing with Fact Issues [Seite 829]
8.2.3.5.2 - (b) Explaining the Indicia of Alter Ego [Seite 830]
8.2.3.5.3 - (c) Offering an Opinion on the Ultimate Issue [Seite 831]
8.2.3.6 - NOTES [Seite 831]
8.2.3.7 - LIST OF CASES [Seite 832]
8.2.3.8 - REFERENCES [Seite 833]
8.3 - Regulatory Litigation [Seite 835]
8.3.1 - Chapter 27 Federal Securities Acts and Areas of Expert Analysis [Seite 837]
8.3.1.1 - 27.1 Introduction [Seite 837]
8.3.1.2 - 27.2 Federal Securities Acts [Seite 838]
8.3.1.2.1 - (a) Securities Act of 1933 [Seite 838]
8.3.1.2.2 - (b) Securities Exchange Act of 1934 [Seite 838]
8.3.1.2.3 - (c) Private Securities Litigation Reform Act of 1995 [Seite 839]
8.3.1.3 - 27.3 Alternative Damages Measures [Seite 841]
8.3.1.3.1 - (a) Section 11 of the 1933 Act [Seite 841]
8.3.1.3.2 - (b) Section 12 of the 1933 Act [Seite 841]
8.3.1.3.3 - (c) Section 9 of the 1934 Act [Seite 842]
8.3.1.3.4 - (d) Section 16 of the 1934 Act [Seite 842]
8.3.1.3.5 - (e) Section 10(b) of the 1934 Act and Rule 10b-5 [Seite 842]
8.3.1.3.6 - (f) Section 21D(e) of the 1934 Act (Limitation on Damages) [Seite 843]
8.3.1.4 - 27.4 The Expert's Role [Seite 844]
8.3.1.4.1 - (a) Event Study Methods [Seite 844]
8.3.1.4.2 - (b) Constructing the But-For Value Line [Seite 848]
8.3.1.4.3 - (c) Estimating Damages [Seite 851]
8.3.1.5 - APPENDIX A: STATISTICAL APPROACH TO THE EVENT STUDY [Seite 854]
8.3.1.6 - APPENDIX B: TRADING MODEL DISCUSSION [Seite 858]
8.3.1.7 - NOTES [Seite 860]
8.3.1.8 - LIST OF CASES [Seite 864]
8.3.1.9 - REFERENCES [Seite 865]
8.3.2 - Chapter 28 Economic Analysis in Securities Class Certification [Seite 867]
8.3.2.1 - 28.1 Introduction [Seite 867]
8.3.2.2 - 28.2 Predominance of Individual versus Common Issues [Seite 869]
8.3.2.2.1 - (a) The Fraud-on-the-Market Doctrine and Market Efficiency in 10b-5 Securities Class Actions [Seite 869]
8.3.2.2.2 - (b) Assessment of Market Efficiency [Seite 869]
8.3.2.3 - 28.3 Intraclass Conflicts [Seite 872]
8.3.2.3.1 - (a) 10b-5 Class Actions [Seite 872]
8.3.2.3.2 - (b) Employee Retirement Income Security Act (ERISA) Stock-Drop Class Actions [Seite 875]
8.3.2.4 - 28.4 Recent Supreme Court Decisions [Seite 877]
8.3.2.4.1 - (a) Erica P. John Fund, Inc., FKA Archdiocese of Milwaukee Supporting Fund, Inc., v. Halliburton Co. et al. [Seite 878]
8.3.2.4.2 - (b) Wal-Mart Stores, Inc., v. Dukes et al. [Seite 878]
8.3.2.4.3 - (c) Comcast Corp. et al. v. Behrend et al. [Seite 879]
8.3.2.5 - 28.5 Conclusion [Seite 880]
8.3.2.6 - NOTES [Seite 880]
8.3.2.7 - LIST OF CASES [Seite 883]
8.3.2.8 - REFERENCES [Seite 883]
8.3.3 - Chapter 29 Monitorships and Deferred Prosecution Agreements: History, Process, and Recent Trends [Seite 885]
8.3.3.1 - 29.1 Introduction [Seite 885]
8.3.3.2 - 29.2 Antecedents to the Modern Monitorship [Seite 886]
8.3.3.3 - 29.3 DOJ and SEC Agreements Involving Monitors and ICCs [Seite 887]
8.3.3.3.1 - (a) Introduction [Seite 887]
8.3.3.3.2 - (b) Amendment of Federal Sentencing Guidelines: Elements of an "Effective Compliance and Ethics Program" [Seite 888]
8.3.3.3.3 - (c) Controversy and DOJ Guidance Relating to Monitorships [Seite 890]
8.3.3.3.4 - (d) Confidentiality of Monitor/ICC Reports and Work Papers [Seite 892]
8.3.3.4 - 29.4 Initial Monitorship and ICC Cases [Seite 894]
8.3.3.4.1 - (a) WorldCom, Inc.-The Modern Era of Monitorships [Seite 894]
8.3.3.4.2 - (b) Early Post-SOX DPAs [Seite 895]
8.3.3.5 - 29.5 DPAs and Monitorships/ICCs, 2010-2015: Overview and Reflections [Seite 898]
8.3.3.5.1 - (a) Background [Seite 898]
8.3.3.5.2 - (b) Monitors and ICCs in FCPA Cases [Seite 899]
8.3.3.5.3 - (c) Non-FCPA DPAs and Monitorships/ICCs [Seite 900]
8.3.3.6 - 29.6 Conclusion [Seite 900]
8.3.3.7 - NOTES [Seite 901]
8.3.3.8 - APPENDIX A: RESTORING TRUST: SUMMARY OF CORPORATE MONITOR'S GOVERNANCE RECOMMENDATIONS FOR POST-EMERGENCE MCI CORP. [Seite 905]
8.3.3.9 - APPENDIX B: SUMMARY OF BONNY ISLAND FCPA DPAs [Seite 911]
8.3.3.10 - APPENDIX C: SELECTED FCPA DPAs: 2010-2015 [Seite 914]
8.3.3.11 - APPENDIX D: SELECTED NON-FCPA DPAs: 2010-2015 [Seite 916]
8.3.4 - Chapter 30 Securities Finance Disputes [Seite 921]
8.3.4.1 - 30.1 Introduction [Seite 921]
8.3.4.2 - 30.2 Overview of Securities Finance Litigation [Seite 922]
8.3.4.2.1 - (a) Noncash Collateral [Seite 925]
8.3.4.2.2 - (b) Risks in Securities Borrowing and Lending Programs (SBLs) [Seite 926]
8.3.4.2.3 - (c) External Securities Lending Data Sources [Seite 927]
8.3.4.2.4 - (d) Setting Up a Securities Lending Program [Seite 927]
8.3.4.2.5 - (e) Investment of Cash Collateral (Primarily in the United States) [Seite 927]
8.3.4.2.6 - (f) Investment Guidelines [Seite 929]
8.3.4.3 - 30.3 Types of Securities Lending Litigation Cases [Seite 930]
8.3.4.3.1 - (a) Unsuitable Investments in Reinvested Collateral [Seite 930]
8.3.4.3.2 - (b) Improper and Excessive Fees [Seite 932]
8.3.4.3.3 - (c) Additional Issues Related to Class Certification [Seite 933]
8.3.4.3.4 - (d) Securities Lending and Dividend Arbitrage [Seite 935]
8.3.4.4 - 30.4 Conclusion [Seite 936]
8.3.4.5 - NOTES [Seite 936]
8.3.4.6 - GLOSSARY [Seite 939]
8.3.5 - Chapter 31 Antitrust [Seite 941]
8.3.5.1 - 31.1 Introduction [Seite 941]
8.3.5.2 - 31.2 Antitrust Statutes [Seite 943]
8.3.5.2.1 - (a) Section 1 of the Sherman Act-Restraint of Trade (1890) [Seite 943]
8.3.5.2.2 - (b) Section 2 of the Sherman Act-Monopolization (1890) [Seite 946]
8.3.5.2.3 - (c) The Clayton Act (1914) [Seite 947]
8.3.5.2.4 - (d) The Robinson-Patman Act (1936) [Seite 948]
8.3.5.2.5 - (e) The Federal Trade Commission Act (1914) [Seite 948]
8.3.5.3 - 31.3 Antitrust and Transactions [Seite 949]
8.3.5.3.1 - (a) The Review Process [Seite 949]
8.3.5.3.2 - (b) Economic Principles That Guide the Review Process [Seite 950]
8.3.5.4 - 31.4 Antitrust and Intellectual Property [Seite 953]
8.3.5.5 - 31.5 Statutory Authority for Damages and Injunctions [Seite 954]
8.3.5.5.1 - (a) Damages Claims [Seite 954]
8.3.5.5.2 - (b) States Attorneys General Parens Patriae Cases [Seite 954]
8.3.5.5.3 - (c) Injunctions [Seite 954]
8.3.5.6 - 31.6 Prerequisites for Antitrust Damages [Seite 955]
8.3.5.6.1 - (a) Statute of Limitations [Seite 955]
8.3.5.6.2 - (b) Standing [Seite 955]
8.3.5.6.3 - (c) Indirect Purchaser Claims [Seite 955]
8.3.5.7 - 31.7 Antitrust Injury [Seite 956]
8.3.5.8 - 31.8 Quantifying Damages [Seite 957]
8.3.5.8.1 - (a) Means of Quantifying Damages [Seite 957]
8.3.5.8.2 - (b) Calculating Overcharge [Seite 960]
8.3.5.9 - 31.9 The Role of Experts in Antitrust Matters [Seite 961]
8.3.5.10 - NOTES [Seite 962]
8.3.6 - Chapter 32 Federal Contract Disputes [Seite 969]
8.3.6.1 - 32.1 Introduction [Seite 969]
8.3.6.2 - 32.2 Federal Contracts and Nature of Disputes [Seite 971]
8.3.6.2.1 - (a) Understanding Solicitation Provisions and Contract Clauses [Seite 971]
8.3.6.2.2 - (b) Focus of Experts Based on Type of Federal Contract [Seite 972]
8.3.6.3 - 32.3 Laws, Regulations, and Guidance [Seite 973]
8.3.6.3.1 - (a) Statutes [Seite 973]
8.3.6.3.2 - (b) Regulations [Seite 975]
8.3.6.3.3 - (c) Guidance [Seite 977]
8.3.6.4 - 32.4 The Financial Expert [Seite 977]
8.3.6.4.1 - (a) Qualifications [Seite 977]
8.3.6.4.2 - (b) Role [Seite 978]
8.3.6.5 - 32.5 Protests and Pre-Award Disputes [Seite 980]
8.3.6.6 - 32.6 Contractor Claims [Seite 980]
8.3.6.6.1 - (a) Overview and Change Orders [Seite 980]
8.3.6.6.2 - (b) Breach of Contract Damages [Seite 981]
8.3.6.7 - 32.7 Contract Pricing and Changes [Seite 982]
8.3.6.7.1 - (a) Defective Pricing [Seite 982]
8.3.6.7.2 - (b) Allowable Cost [Seite 984]
8.3.6.7.3 - (c) Cost Accounting Standards [Seite 986]
8.3.6.7.4 - (d) Contract Termination [Seite 987]
8.3.6.7.5 - (e) Extraordinary Business Transactions [Seite 988]
8.3.6.7.6 - (f) Commercial Contracts [Seite 989]
8.3.6.7.7 - (g) Interest [Seite 991]
8.3.6.8 - 32.8 False Claims Act (FCA) [Seite 991]
8.3.6.9 - 32.9 Qui Tam Actions [Seite 992]
8.3.6.10 - 32.10 Financial Accounting Disputes [Seite 993]
8.3.6.11 - 32.11 The Dispute and Litigation Process [Seite 994]
8.3.6.12 - APPENDIX A: SELECTED FINANCIAL ACRONYMS [Seite 997]
8.3.6.13 - APPENDIX B: UNIFORM CONTRACT FORMAT [Seite 999]
8.3.6.14 - APPENDIX C: POSITIVE LAW CODIFICATION [Seite 1000]
8.3.6.15 - APPENDIX D: COMPLETED DCAA FY 2015 AUDIT REPORTS [Seite 1002]
8.3.6.16 - NOTES [Seite 1003]
8.3.6.17 - LIST OF CASES [Seite 1006]
8.4 - Construction and Real Property Disputes [Seite 1007]
8.4.1 - Chapter 33 Construction Claims [Seite 1009]
8.4.1.1 - 33.1 Introduction [Seite 1009]
8.4.1.1.1 - (a) Types of Claims [Seite 1010]
8.4.1.1.2 - (b) Typical Parties Involved [Seite 1011]
8.4.1.1.3 - (c) Common Contract Arrangements [Seite 1012]
8.4.1.1.4 - (d) Pricing Arrangements [Seite 1013]
8.4.1.1.5 - (e) Contract Language [Seite 1013]
8.4.1.1.6 - (f) Types of Experts [Seite 1014]
8.4.1.1.7 - (g) Key Project Documentation [Seite 1015]
8.4.1.2 - 33.2 Cost Pools [Seite 1016]
8.4.1.2.1 - (a) Job Cost Accounting [Seite 1016]
8.4.1.2.2 - (b) Verification of Costs [Seite 1016]
8.4.1.2.3 - (c) Segregation of Cost Pools [Seite 1017]
8.4.1.2.4 - (d) Relation between Cost Pools and Types of Claims [Seite 1018]
8.4.1.3 - 33.3 Damages Models [Seite 1019]
8.4.1.3.1 - (a) Delay [Seite 1019]
8.4.1.3.2 - (b) Disruption [Seite 1021]
8.4.1.3.3 - (c) Extra Work [Seite 1025]
8.4.1.3.4 - (d) Acceleration [Seite 1027]
8.4.1.3.5 - (e) Home Office Overhead [Seite 1028]
8.4.1.4 - 33.4 Delay Claim Calculations [Seite 1028]
8.4.1.4.1 - (a) Impacted As-Planned [Seite 1029]
8.4.1.4.2 - (b) Collapsed As-Built [Seite 1029]
8.4.1.4.3 - (c) Windows Analysis [Seite 1029]
8.4.1.4.4 - (d) Time Impact Analysis [Seite 1030]
8.4.1.5 - 33.5 Claims Avoidance [Seite 1030]
8.4.1.6 - 33.6 Conclusion [Seite 1031]
8.4.1.7 - NOTES [Seite 1031]
8.4.1.8 - LIST OF CASES [Seite 1032]
8.4.2 - Chapter 34 Real Estate Litigation [Seite 1033]
8.4.2.1 - 34.1 Introduction [Seite 1034]
8.4.2.2 - 34.2 Damages Related to Lender Liability and Economic Transitions [Seite 1035]
8.4.2.2.1 - (a) Insolvency and Troubled Company Matters [Seite 1036]
8.4.2.2.2 - (b) Lender Liability Matters [Seite 1036]
8.4.2.2.3 - (c) Residential versus Commercial Property [Seite 1037]
8.4.2.2.4 - (d) Different Valuation Methods [Seite 1037]
8.4.2.2.5 - (e) Highest and Best Use [Seite 1038]
8.4.2.2.6 - (f) Valuation Methods [Seite 1039]
8.4.2.3 - 34.3 Damages Related to Environmental Disputes, Residential Market [Seite 1044]
8.4.2.3.1 - (a) Neighborhood Comparison Approach [Seite 1045]
8.4.2.3.2 - (b) Proximity Approach [Seite 1046]
8.4.2.3.3 - (c) Hybrid Approach [Seite 1046]
8.4.2.3.4 - (d) Prediction versus Hypothesis Testing [Seite 1048]
8.4.2.3.5 - (e) Other Quantitative Methods [Seite 1049]
8.4.2.3.6 - (f) Structured Market Participant Interviews [Seite 1051]
8.4.2.3.7 - (g) Retrospective Appraisal Methods [Seite 1052]
8.4.2.3.8 - (h) Interpreting the Results of Retrospective Appraisal Methods [Seite 1053]
8.4.2.4 - 34.4 Damages Related to Environmental Disputes, Commercial Real Estate [Seite 1053]
8.4.2.4.1 - (a) Direct Capitalization Method [Seite 1053]
8.4.2.4.2 - (b) Overall Capitalization Rate [Seite 1055]
8.4.2.4.3 - (c) Discounted Cash Flow Method [Seite 1057]
8.4.2.4.4 - (d) Analysis of Income or Cash Flow Effects [Seite 1058]
8.4.2.4.5 - (e) Analysis of Risk Effects [Seite 1058]
8.4.2.4.6 - (f) Summary of Damages Related to Environmental Disputes, Commercial Real Estate [Seite 1059]
8.4.2.5 - NOTES [Seite 1060]
8.4.2.6 - REFERENCES [Seite 1061]
8.5 - Other Civil Litigation [Seite 1063]
8.5.1 - Chapter 35 Accountant Liability [Seite 1065]
8.5.1.1 - 35.1 Introduction [Seite 1065]
8.5.1.2 - 35.2 Types of Accounting Services [Seite 1066]
8.5.1.3 - 35.3 An Overview of the Law [Seite 1068]
8.5.1.3.1 - (a) Claims for Negligence or Negligent Misrepresentation [Seite 1068]
8.5.1.3.2 - (b) Claims for Fraud [Seite 1071]
8.5.1.3.3 - (c) Claims for Breach of Contract [Seite 1072]
8.5.1.3.4 - (d) The Federal Securities Laws [Seite 1072]
8.5.1.3.5 - (e) Regulatory Proceedings [Seite 1073]
8.5.1.4 - 35.4 The Plaintiff's Strategies [Seite 1074]
8.5.1.4.1 - (a) The Financial Statements Have Errors [Seite 1074]
8.5.1.4.2 - (b) The Auditors Failed to Perform Their Duties [Seite 1075]
8.5.1.4.3 - (c) The Auditor Should Have Discovered the Problem [Seite 1076]
8.5.1.5 - 35.5 The Strategies of the Defendant Auditor [Seite 1077]
8.5.1.5.1 - (a) The Audited Financial Statements Were Not Materially Misstated [Seite 1078]
8.5.1.5.2 - (b) No Justifiable Reliance [Seite 1079]
8.5.1.5.3 - (c) Management Is Responsible for the Financial Statements [Seite 1080]
8.5.1.5.4 - (d) The Independent Auditor's Report Was Correct [Seite 1081]
8.5.1.6 - 35.6 The Role of the Financial Expert in Accountants' Liability Litigation [Seite 1083]
8.5.1.6.1 - (a) The Accounting Expert [Seite 1083]
8.5.1.6.2 - (b) The Audit Expert [Seite 1084]
8.5.1.6.3 - (c) The Financial Analysis Expert [Seite 1085]
8.5.1.6.4 - (d) The Damages Expert [Seite 1085]
8.5.1.7 - 35.7 Know Your Audience [Seite 1085]
8.5.1.8 - NOTES [Seite 1086]
8.5.2 - Chapter 36 Executive Compensation in the Litigation Setting [Seite 1089]
8.5.2.1 - 36.1 Introduction [Seite 1090]
8.5.2.2 - 36.2 Executive Compensation Issues in Disputes and Investigations [Seite 1091]
8.5.2.2.1 - (a) Disputes Regarding the Nature, Extent, and Propriety of Executive Compensation [Seite 1091]
8.5.2.2.2 - (b) Fraud, Breach of Fiduciary Duty, and Executive Compensation [Seite 1092]
8.5.2.2.3 - (c) Executive Compensation as an Element of Other Disputes [Seite 1092]
8.5.2.3 - 36.3 Executive and Director Compensation: Theory and Practice [Seite 1093]
8.5.2.3.1 - (a) Compensation Schemes and the Role of Incentives [Seite 1093]
8.5.2.3.2 - (b) The Optimal Contracting Approach versus the Managerial Power Approach [Seite 1097]
8.5.2.4 - 36.4 Trends in Stock-Based Compensation Regulatory Reporting and Practice [Seite 1099]
8.5.2.4.1 - (a) Options Accounting under APB No. 25 and the Early Debate over Expensing Stock Options [Seite 1099]
8.5.2.4.2 - (b) Options Accounting under SFAS No. 123 and the Continued Expansion of Options-Based Executive Compensation [Seite 1099]
8.5.2.4.3 - (c) Implementation of the ASC 718 Option Expensing Rules [Seite 1100]
8.5.2.4.4 - (d) Dodd-Frank Requirements Relating to Executive Compensation [Seite 1101]
8.5.2.5 - 36.5 Issues Regarding the Nature and Amount of Compensation [Seite 1102]
8.5.2.5.1 - (a) Earnings-Based Bonuses and Earnings Manipulations [Seite 1102]
8.5.2.5.2 - (b) Understatement of Executives' Compensation Cost and Restatements [Seite 1104]
8.5.2.5.3 - (c) Backdating the Options Grant Date and Restatements [Seite 1105]
8.5.2.5.4 - (d) Quantifying Executive Compensation [Seite 1106]
8.5.2.5.5 - (e) Executives' Equity-Based Compensation and Incentive for Accounting Fraud [Seite 1107]
8.5.2.5.6 - (f) Takeovers and Golden Parachutes and Termination without Cause [Seite 1109]
8.5.2.5.7 - (g) Allegations of Improper Compensation, Embezzlement, and Abuse of Executive Authority [Seite 1111]
8.5.2.5.8 - (h) Consideration of Executive Compensation in Valuation-Related Disputes [Seite 1113]
8.5.2.6 - 36.6 Challenges in Presenting Executive Compensation in Litigation Proceedings [Seite 1113]
8.5.2.6.1 - (a) Considering and Presenting the "Value" of Performance- and Stock-Based Compensation [Seite 1113]
8.5.2.6.2 - (b) Putting Executive Compensation in Context [Seite 1116]
8.5.2.7 - 36.7 Conclusion [Seite 1119]
8.5.2.8 - NOTES [Seite 1119]
8.5.2.9 - REFERENCES [Seite 1120]
8.5.3 - Chapter 37 Covenants Not to Compete (Noncompete Agreements or NCAs) [Seite 1123]
8.5.3.1 - 37.1 Introduction [Seite 1123]
8.5.3.2 - 37.2 Do States Favor or Disfavor NCAs? [Seite 1124]
8.5.3.3 - 37.3 State Issues [Seite 1125]
8.5.3.3.1 - (a) Statute versus Case Law [Seite 1125]
8.5.3.3.2 - (b) Protectable/Legitimate Interests [Seite 1125]
8.5.3.3.3 - (c) Importance of Reasonableness and Consideration [Seite 1126]
8.5.3.3.4 - (d) "Blue-Penciling" and Reformation [Seite 1126]
8.5.3.3.5 - (e) Conclusions [Seite 1127]
8.5.3.4 - 37.4 Analysis of NCAs Ancillary to Employee Contracts [Seite 1127]
8.5.3.4.1 - (a) Range of Permitted Time Restrictions [Seite 1127]
8.5.3.4.2 - (b) Range of Permitted Geographic Restrictions [Seite 1127]
8.5.3.4.3 - (c) Discharged Employees [Seite 1128]
8.5.3.4.4 - (d) Exceptions to NCAs [Seite 1128]
8.5.3.5 - 37.5 Analysis of NCAs Ancillary to the Sale of Business/Goodwill [Seite 1128]
8.5.3.5.1 - (a) Range of Permitted Time Restrictions [Seite 1128]
8.5.3.5.2 - (b) Range of Permitted Geographic Restrictions [Seite 1128]
8.5.3.6 - BIBLIOGRAPHY [Seite 1129]
8.5.3.7 - NOTES [Seite 1130]
8.5.3.8 - APPENDIX: ANALYSIS OF NONCOMPETE AGREEMENTS BY STATE [Seite 1131]
8.5.4 - Chapter 38 Employment Litigation [Seite 1185]
8.5.4.1 - 38.1 Introduction [Seite 1186]
8.5.4.2 - 38.2 The Economics of Discrimination [Seite 1187]
8.5.4.3 - 38.3 Legal Background [Seite 1188]
8.5.4.3.1 - (a) Title VII of the Civil Rights Act of 1964 (Amended in 1991) [Seite 1188]
8.5.4.3.2 - (b) Bona Fide Occupational Qualification and Business Necessity [Seite 1188]
8.5.4.3.3 - (c) Age Discrimination in Employment Act [Seite 1189]
8.5.4.3.4 - (d) Americans with Disabilities Act [Seite 1189]
8.5.4.3.5 - (e) Equal Pay Act of 1963 [Seite 1189]
8.5.4.3.6 - (f) 42 U.S.C. § 1981 [Seite 1189]
8.5.4.3.7 - (g) Executive Order 11246 [Seite 1189]
8.5.4.3.8 - (h) Lilly Ledbetter Fair Pay Act of 2009 [Seite 1190]
8.5.4.4 - 38.4 Categories of Discrimination: Adverse Treatment and Disparate Impact [Seite 1190]
8.5.4.5 - 38.5 Statistical Background [Seite 1190]
8.5.4.5.1 - (a) Statistical Analysis and Tests of Significance [Seite 1190]
8.5.4.5.2 - (b) Hypothesis Tests [Seite 1191]
8.5.4.5.3 - (c) Identifying Expectations in the Absence of Discrimination [Seite 1191]
8.5.4.5.4 - (d) Representation and Availability [Seite 1191]
8.5.4.5.5 - (e) Review of Statistical Methods [Seite 1192]
8.5.4.5.6 - (f) One-Sample Binomial Tests: Z-Scores [Seite 1193]
8.5.4.5.7 - (g) Chi-Square Tests [Seite 1195]
8.5.4.5.8 - (h) Small-Sample Statistical Tests [Seite 1196]
8.5.4.5.9 - (i) t-Tests: Comparing Two Means [Seite 1196]
8.5.4.5.10 - (j) Multiple Regression Analysis [Seite 1197]
8.5.4.6 - 38.6 Forms of Data Used in Employment Litigation [Seite 1197]
8.5.4.7 - 38.7 Recruitment and Hiring [Seite 1198]
8.5.4.7.1 - (a) Defining the Relevant External Labor Market [Seite 1199]
8.5.4.7.2 - (b) Estimating the Availability of a Protected Class in the Labor Market [Seite 1200]
8.5.4.7.3 - (c) Statistical Tests for Recruitment Discrimination [Seite 1201]
8.5.4.7.4 - (d) Discrimination Resulting from Employee Referrals [Seite 1202]
8.5.4.7.5 - (e) Hiring Discrimination [Seite 1202]
8.5.4.7.6 - (f) Placement [Seite 1202]
8.5.4.8 - 38.8 Promotion Practices [Seite 1203]
8.5.4.8.1 - (a) Company Hierarchies and Job-Feeder Analysis [Seite 1203]
8.5.4.8.2 - (b) Graphical Depictions of Statistical Findings [Seite 1208]
8.5.4.8.3 - (c) Economic Theory and Promotion Analysis [Seite 1208]
8.5.4.9 - 38.9 Termination [Seite 1209]
8.5.4.9.1 - (a) Large-Scale Layoffs [Seite 1209]
8.5.4.9.2 - (b) Statistical Analysis of a RIF: Stayer-Leaver Analysis [Seite 1210]
8.5.4.9.3 - (c) Analysis of Termination over Longer Time Periods [Seite 1210]
8.5.4.9.4 - (d) A Special Consideration Related to Age Discrimination in Terminations [Seite 1211]
8.5.4.10 - 38.10 Compensation and Pay [Seite 1212]
8.5.4.10.1 - (a) Sample Analysis of Pay Discrimination [Seite 1213]
8.5.4.11 - 38.11 Wage and Hour Litigation [Seite 1214]
8.5.4.12 - 38.12 Conclusion [Seite 1216]
8.5.4.13 - NOTES [Seite 1216]
8.5.4.14 - LIST OF CASES [Seite 1220]
8.5.4.15 - REFERENCES [Seite 1221]
8.5.5 - Chapter 39 Fair Lending Litigation [Seite 1223]
8.5.5.1 - 39.1 Introduction [Seite 1224]
8.5.5.2 - 39.2 Legal Background [Seite 1225]
8.5.5.2.1 - (a) Fair Housing Act [Seite 1226]
8.5.5.2.2 - (b) Equal Credit Opportunity Act [Seite 1226]
8.5.5.2.3 - (c) Civil Rights Act of 1866, As Amended [Seite 1226]
8.5.5.2.4 - (d) Community Reinvestment Act of 1977 [Seite 1227]
8.5.5.2.5 - (e) Home Mortgage Disclosure Act [Seite 1227]
8.5.5.3 - 39.3 Categories of Discrimination: Disparate Treatment and Disparate Impact [Seite 1228]
8.5.5.4 - 39.4 Statistical Background [Seite 1230]
8.5.5.4.1 - (a) Statistical Analysis and Tests of Significance [Seite 1230]
8.5.5.4.2 - (b) Hypothesis Tests [Seite 1230]
8.5.5.4.3 - (c) Review of Statistical Methods [Seite 1231]
8.5.5.4.4 - (d) Two-Sample Binomial Tests: Z -Scores [Seite 1232]
8.5.5.4.5 - (e) t -Tests: Comparing Two Means [Seite 1232]
8.5.5.4.6 - (f) Multiple Regression Analysis [Seite 1232]
8.5.5.4.7 - (g) Comparative File Review [Seite 1233]
8.5.5.5 - 39.5 Forms of Data Used in Fair Lending Litigation [Seite 1233]
8.5.5.5.1 - (a) Omitted Variables [Seite 1234]
8.5.5.5.2 - (b) Reliability and Completeness [Seite 1234]
8.5.5.5.3 - (c) Sample Selection Bias [Seite 1235]
8.5.5.6 - 39.6 Underwriting [Seite 1236]
8.5.5.6.1 - (a) Selection of the Pool of Applicants [Seite 1237]
8.5.5.6.2 - (b) Data Collection [Seite 1238]
8.5.5.6.3 - (c) Statistical Analysis of Underwriting Discrimination [Seite 1238]
8.5.5.7 - 39.7 Pricing [Seite 1242]
8.5.5.7.1 - (a) Selection of the Pool of Applicants [Seite 1242]
8.5.5.7.2 - (b) Data Collection [Seite 1242]
8.5.5.7.3 - (c) Statistical Analysis of Pricing Discrimination [Seite 1242]
8.5.5.8 - 39.8 Redlining [Seite 1245]
8.5.5.8.1 - (a) Selection of the Relevant Market or Pool of Applicants [Seite 1245]
8.5.5.8.2 - (b) Data Collection [Seite 1246]
8.5.5.8.3 - (c) Statistical Analysis of Redlining [Seite 1247]
8.5.5.8.4 - (d) Statistical Analysis of Reverse Redlining [Seite 1252]
8.5.5.9 - 39.9 Fair Servicing [Seite 1253]
8.5.5.9.1 - (a) Selection of the Pool of Borrowers [Seite 1253]
8.5.5.9.2 - (b) Data Collection [Seite 1253]
8.5.5.9.3 - (c) Statistical Analysis of Loan Servicing [Seite 1254]
8.5.5.10 - 39.10 Conclusion [Seite 1255]
8.5.5.11 - NOTES [Seite 1255]
9 - PART VI: Criminal Matters and Investigations [Seite 1263]
9.1 - Chapter 40 Tax Fraud: Criminal Cases [Seite 1265]
9.1.1 - 40.1 Avoidance versus Evasion and Civil versus Criminal [Seite 1265]
9.1.2 - 40.2 Four Most Common Tax Crimes [Seite 1267]
9.1.2.1 - (a) 26 U.S.C. § 7201: Attempt to Evade or Defeat Tax [Seite 1267]
9.1.2.2 - (b) 26 U.S.C. § 7206(1): Fraud and False Statement [Seite 1268]
9.1.2.3 - (c) 26 U.S.C. § 7206(2): Assisting in the Preparation of a False Return [Seite 1268]
9.1.2.4 - (d) 18 U.S.C. § 371: Conspiracy to Defraud the United States (Klein Conspiracy) [Seite 1269]
9.1.3 - 40.3 Proof Beyond a Reasonable Doubt in a Tax Prosecution [Seite 1269]
9.1.4 - 40.4 Shorthand Formula for a Criminal Tax Case [Seite 1270]
9.1.5 - 40.5 Methods of Proving Tax Deficiency [Seite 1270]
9.1.5.1 - (a) Direct versus Indirect [Seite 1271]
9.1.5.2 - (b) Specific Items [Seite 1272]
9.1.5.3 - (c) Bank Deposits [Seite 1273]
9.1.5.4 - (d) Net Worth [Seite 1273]
9.1.5.5 - (e) Expenditures [Seite 1274]
9.1.5.6 - (f) Cash [Seite 1275]
9.1.6 - 40.6 Proving Intent: Badges of Fraud [Seite 1275]
9.1.6.1 - (a) Classic Badges of Fraud [Seite 1276]
9.1.6.2 - (b) More Badges of Fraud [Seite 1276]
9.1.7 - 40.7 Government's Sources for Criminal and Civil Tax Fraud Cases [Seite 1277]
9.1.7.1 - (a) Fraud Technical Advisor [Seite 1277]
9.1.7.2 - (b) IRS Criminal Referrals [Seite 1278]
9.1.8 - 40.8 Investigation by CI: Administrative versus Grand Jury Investigations [Seite 1279]
9.1.9 - 40.9 Government's Standard of Review for a Criminal Tax Case [Seite 1280]
9.1.10 - 40.10 Role of the Accountant [Seite 1280]
9.1.10.1 - (a) Role of the Historical Accountant [Seite 1280]
9.1.10.2 - (b) Role of the Kovel Accountant [Seite 1281]
9.1.10.3 - (c) Role of the Summary Expert Witness [Seite 1282]
9.1.10.4 - (d) Civil Tax Fraud Cases with No Criminal Potential [Seite 1282]
9.1.10.5 - (e) Pre-IRS Referral and Voluntary Disclosure [Seite 1282]
9.1.10.6 - (f) Voluntary Disclosures Regarding Secret Foreign Bank Accounts [Seite 1285]
9.1.10.7 - (g) Pre-CI Referral: The Eggshell Audit [Seite 1287]
9.1.11 - 40.11 Conclusion: Parting Advice Regarding Criminal and Civil Tax Fraud [Seite 1287]
9.1.12 - NOTES [Seite 1287]
9.1.13 - LIST OF CASES [Seite 1290]
9.2 - Chapter 41 Financial Statement Investigations [Seite 1293]
9.2.1 - 41.1 Introduction [Seite 1293]
9.2.2 - 41.2 What Is Fraud? [Seite 1294]
9.2.2.1 - (a) Financial Statement Misstatements [Seite 1295]
9.2.2.2 - (b) The Fraud Triangle [Seite 1296]
9.2.3 - 41.3 Sources and Triggers of Investigations [Seite 1298]
9.2.3.1 - (a) Internal Audit [Seite 1298]
9.2.3.2 - (b) External Audit [Seite 1298]
9.2.3.3 - (c) Whistleblowers [Seite 1299]
9.2.3.4 - (d) SEC Inquiry [Seite 1299]
9.2.3.5 - (e) Due Diligence-Mergers and Acquisitions [Seite 1299]
9.2.4 - 41.4 Investigation Life Cycle [Seite 1300]
9.2.4.1 - (a) Initial Coordination and Scoping [Seite 1300]
9.2.4.2 - (b) Evidence [Seite 1301]
9.2.4.3 - (c) Collection and Processing of Electronic Evidence [Seite 1303]
9.2.4.4 - (d) Data Review and Analysis [Seite 1303]
9.2.4.5 - (e) Interviews [Seite 1305]
9.2.5 - 41.5 Understanding Intent [Seite 1306]
9.2.6 - 41.6 Communicating [Seite 1307]
9.2.7 - 41.7 Trends in Regulation [Seite 1308]
9.2.8 - 41.8 Selected Examples of Financial Statement Fraud [Seite 1309]
9.2.8.1 - (a) Revenue Recognition [Seite 1309]
9.2.8.2 - (b) Asset Valuation and Impairment [Seite 1313]
9.2.9 - NOTES [Seite 1315]
9.2.10 - LIST OF CASES [Seite 1316]
9.2.11 - REFERENCES [Seite 1317]
9.3 - Chapter 42 Health Care Fraud and False Claims Act Damages [Seite 1319]
9.3.1 - 42.1 Introduction [Seite 1319]
9.3.2 - 42.2 The Health Care Reimbursement System [Seite 1320]
9.3.2.1 - (a) Fee-for-Service [Seite 1321]
9.3.2.2 - (b) Managed Care [Seite 1321]
9.3.2.3 - (c) Primary and Secondary Insurance [Seite 1322]
9.3.3 - 42.3 Background and Purpose of the FCA [Seite 1322]
9.3.3.1 - (a) Development of the FCA [Seite 1322]
9.3.3.2 - (b) Current Law [Seite 1323]
9.3.3.3 - (c) Examples of FCA Enforcement in the Health Care Industry [Seite 1325]
9.3.3.4 - (d) Statistics on FCA Prosecutions and Settlements [Seite 1327]
9.3.4 - 42.4 Approaches to Damages Calculations [Seite 1328]
9.3.4.1 - (a) Simple Fraud [Seite 1329]
9.3.4.2 - (b) "Worthless" Services [Seite 1329]
9.3.4.3 - (c) Stark Law and Anti-Kickback Statute Violations [Seite 1330]
9.3.4.4 - (d) Netting [Seite 1331]
9.3.5 - 42.5 Practical Considerations for the Expert Witness [Seite 1332]
9.3.5.1 - (a) Reliability and Applicability of the Available Data [Seite 1332]
9.3.5.2 - (b) Sampling [Seite 1332]
9.3.5.3 - (c) Period at Issue [Seite 1334]
9.3.6 - 42.6 Conclusion [Seite 1335]
9.3.7 - NOTES [Seite 1335]
9.4 - Chapter 43 International Investigations: Successful Planning and Execution [Seite 1343]
9.4.1 - 43.1 Introduction [Seite 1343]
9.4.2 - 43.2 Planning [Seite 1344]
9.4.2.1 - (a) Establishing the Existence of Wrongdoing [Seite 1345]
9.4.2.2 - (b) Defining the Engagement Parameters [Seite 1347]
9.4.2.3 - (c) Creating a Team [Seite 1350]
9.4.3 - 43.3 Logistical Planning [Seite 1351]
9.4.3.1 - (a) Entry Permits/Visas [Seite 1351]
9.4.3.2 - (b) Immunizations [Seite 1352]
9.4.3.3 - (c) Personal Security [Seite 1352]
9.4.3.4 - (d) International Cell Phone Usage [Seite 1353]
9.4.3.5 - (e) Ground Transportation [Seite 1354]
9.4.4 - 43.4 Workspace and Environment [Seite 1355]
9.4.4.1 - (a) Internet Connectivity [Seite 1355]
9.4.4.2 - (b) Workspace and Accommodations [Seite 1355]
9.4.4.3 - (c) Securing the Work Area at the Location [Seite 1355]
9.4.4.4 - (d) Electrical Issues [Seite 1356]
9.4.5 - 43.5 Gathering Electronic Evidence [Seite 1356]
9.4.5.1 - (a) Establishing the Trail of Electronic Data [Seite 1356]
9.4.5.2 - (b) Imaging Computers and Devices [Seite 1357]
9.4.6 - 43.6 Conducting Interviews [Seite 1357]
9.4.6.1 - (a) International Interviewing [Seite 1357]
9.4.6.2 - (b) Interview Preparation Tips [Seite 1358]
9.4.7 - 43.7 Reporting the Findings [Seite 1360]
9.4.8 - 43.8 Conclusion [Seite 1361]
9.4.9 - NOTES [Seite 1361]
10 - Part VII: Family Law [Seite 1363]
10.1 - Chapter 44 Family Law Services [Seite 1365]
10.1.1 - 44.1 Introduction [Seite 1366]
10.1.1.1 - (a) Types of Assignments [Seite 1366]
10.1.1.2 - (b) Family Law Systems [Seite 1366]
10.1.1.3 - (c) Community Property [Seite 1367]
10.1.1.4 - (d) Separate Property [Seite 1367]
10.1.1.5 - (e) Comingled or Equitable Property [Seite 1367]
10.1.1.6 - (f) Quasi-Community Property [Seite 1367]
10.1.2 - 44.2 Family Law Process [Seite 1367]
10.1.2.1 - (a) Dates of Marriage and Separation [Seite 1367]
10.1.2.2 - (b) Temporary Orders [Seite 1368]
10.1.2.3 - (c) Discovery [Seite 1368]
10.1.2.4 - (d) Financial Analysis [Seite 1369]
10.1.2.5 - (e) Trial [Seite 1369]
10.1.3 - 44.3 Support [Seite 1369]
10.1.3.1 - (a) General Rules [Seite 1369]
10.1.3.2 - (b) Child Support [Seite 1369]
10.1.3.3 - (c) Spousal Support [Seite 1370]
10.1.3.4 - (d) Income Available for Support [Seite 1370]
10.1.3.5 - (e) Marital Standard of Living-Spousal Support [Seite 1370]
10.1.4 - 44.4 Character of Property [Seite 1370]
10.1.4.1 - (a) Titled Property [Seite 1370]
10.1.4.2 - (b) Property Acquired Before Marriage [Seite 1371]
10.1.4.3 - (c) Property Acquired During Marriage [Seite 1371]
10.1.5 - 44.5 Commingling, Tracing, and Apportionment [Seite 1371]
10.1.5.1 - (a) Domicile [Seite 1371]
10.1.5.2 - (b) Case-Driven Judicial Principles [Seite 1372]
10.1.5.3 - (c) Commingling Presumptions [Seite 1373]
10.1.5.4 - (d) Form of Title [Seite 1373]
10.1.5.5 - (e) Proportionate Ownership [Seite 1373]
10.1.5.6 - (f) Gain and Income [Seite 1374]
10.1.6 - 44.6 Tracing [Seite 1374]
10.1.6.1 - (a) Overview [Seite 1374]
10.1.6.2 - (b) Direct Tracing [Seite 1375]
10.1.6.3 - (c) Indirect Tracing [Seite 1376]
10.1.6.4 - (d) Commingled Bank Accounts [Seite 1376]
10.1.6.5 - (e) Credit Purchases [Seite 1377]
10.1.7 - 44.7 Transmutations [Seite 1377]
10.1.8 - 44.8 Apportionment [Seite 1377]
10.1.8.1 - (a) Inception of Title [Seite 1377]
10.1.8.2 - (b) Definition and Pereira versus Van Camp Rules [Seite 1378]
10.1.8.3 - (c) Scenario: Pereira and Van Camp [Seite 1379]
10.1.8.4 - (d) Alternatives Under the Van Camp Rule [Seite 1380]
10.1.8.5 - (e) Apportionment: Separate Debt Paid with Community Funds [Seite 1380]
10.1.8.6 - (f) Reimbursement [Seite 1381]
10.1.8.7 - (g) Conclusion [Seite 1382]
10.1.9 - 44.9 Business Valuations [Seite 1382]
10.1.9.1 - (a) Standards [Seite 1382]
10.1.9.2 - (b) Family Law Differences [Seite 1382]
10.1.9.3 - (c) Goodwill [Seite 1383]
10.1.9.4 - (d) Normalized Earnings [Seite 1383]
10.1.9.5 - (e) Reasonable Compensation [Seite 1383]
10.1.9.6 - (f) Double Dip [Seite 1383]
10.1.10 - 44.10 Marital Fraud [Seite 1384]
10.1.10.1 - (a) Duties Between Spouses [Seite 1384]
10.1.10.2 - (b) Common Types of Marital Fraud [Seite 1384]
10.1.11 - NOTES [Seite 1384]
10.1.12 - LIST OF CASES [Seite 1385]
11 - About the Editors [Seite 1387]
12 - About the Contributors [Seite 1391]
13 - Index [Seite 1415]
14 - EULA [Seite 1438]

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