What’s The Damage?
A Primer on Economic Damages in Business Litigation
In business litigations, CPAs are often engaged by an attorney to assist as consultants or expert witnesses in quantifying or rebutting economic damages suffered by the plaintiff as a result of an alleged harm committed by the defendant. This article presents an overview of the legal principles and professional standards—as well as the key concepts with which a CPA should be familiar—when expressing an expert opinion on damages in business litigation. The discussion of damages focuses on lost profits for illustrative purposes; other measures of damages may also be applicable depending on the particular facts and circumstances. Both federal and state statutes and case law are cited. With respect to state law, Virginia is used as a representative example. FVLE, Issue 58 | December 2015/January 2016
Are you involved in a business litigation? Keiter’s VFS team can help. Learn more.
Harold is the Partner-in-Charge of Keiter’s Valuation and Forensic Services Group. He is also a member of Keiter’s Executive Committee. He has over 30 years of experience and specializes in business valuation and forensic accounting, including financial investigations and litigation consulting and expert witness services. Harold shares his insights and knowledge in articles on the Firm’s blog and professional publications. Read Harold’s articles.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.