Project Nature: Lost Profits Litigation (Plaintiff)
SIC: 5013 (Motor Vehicle Supplies and New Parts)
Company Size: $8.2 million in sales
Assignment Issues: The client company had sustained a severe loss of sales, after building to a 55% annual sales growth rate. Plaintiff attorneys attributed the losses to a component part malfunction, which was supplied by the defendant. The defense argued that market demand for our client’s products had fallen, without respect to the malfunctions, thus accounting for the loss in sales. We provided a detailed market share and cost analysis of the client, its industry and of each of its major competitors. Our exhibits clearly showed that the client’s sales volume drop was only partially the result of the modest decline in market demand. Our independent analysis substantiated our claimed damages for lost profits related primarily to the subject part’s malfunction , including loss of capital asset value. Our client successfully obtained a large pre-trial settlement with negotiations beginning within a few days after our final work product was submitted to defense counsel.