FAVORABLE SETTLEMENT OUTCOME REACHED FOR DEFENDANT AFTER HOFFMAN CLARK EXPERT TESTIMONY
Hoffman Clark recently offered expert witness testimony in support of their client’s defense against a $40 million breach of contract claim and helped them achieve a favorable settlement.
The Plaintiff in the case, a medical testing laboratory, alleged that the Defendant breached their contract, violated their duty of care, and breached their fiduciary duty, ultimately resulting in the complete loss of their laboratory business. To support these allegations, the Plaintiff engaged a financial expert who claimed that the laboratory’s value prior to the alleged actions ranged from $26.5 million to $40.6 million, with alleged economic damages estimated between $20 million to $40 million.
Ryan Clark, managing partner at Hoffman Clark, was retained by the Defendant to conduct a comprehensive rebuttal analysis of the Plaintiff’s expert’s calculations and to assess the Plaintiff’s valuation and their resulting economic damages calculations. Hoffman Clark assisted with the preparation of documents and information requests related to the financial data provided by the Plaintiff. In this capacity, Hoffman Clark successfully uncovered a multitude of challenges facing the laboratory business, which cast doubt on Plaintiff’s ability to sustain its operations, regardless of Defendant’s alleged actions.
Consequently, Mr. Clark concluded that, on a liquidation basis, the Plaintiff’s fair market value prior to the allegations was $2 million, and the Plaintiff suffered economic damages of less than $100,000. Mr. Clark’s expert analysis and deposition testimony played a pivotal role in achieving a favorable settlement for the Defendant.
Some of the specific details about the case above were modified in order to further protect the identities of the plaintiff and defendant in this matter.
Hoffman Clark is an integrated Certified Public Accounting firm that provides specialized consulting services to businesses and their legal counsel in solving complex business problems and disputes. The Firm specializes in commercial damages, forensic accounting, valuation and trust services. Hoffman Clark’s office is located in St. Louis (Clayton), Missouri.
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Elizabeth Barrett
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