SUMMARIES OF SELECTED LITIGATION SUPPORT ENGAGEMENTS - COMMERCIAL LITIGATION

Copyright Infringement
SKC was retained as an expert witness by the former owners of a defunct corporation who brought an action against a former distributor of their products for violating copyright laws. We prepared damage theories and the related damage calculations for lost profits. In addition, we assisted the client’s legal counsel in analyzing the defendant’s counterclaim for damages and assisted legal counsel in preparing for the examination of the defendant’s witnesses.

Minority Shareholder Action/Valuation and Trust Accounting
SKC was retained by a wholly-owned subsidiary of a large multi-national corporation to perform litigation support services and forensic accounting procedures relating to the financial condition of twelve interrelated personal holding companies and irrevocable trusts. This litigation was a derivative of a minority shareholder action which was brought against the parent corporation. Our work included reconstruction of the accounting records for each of the twelve holding companies and trusts over a three-year period, preparation of financial summaries with related footnotes and findings relative to the procedures performed, and providing expert witness testimony at various hearings relating to these matters. 

Securities Violations 
SKC was retained as an expert witness by a large multi-national securities broker/dealer to assist their legal counsel in defending actions brought by numerous plaintiffs for alleged securities violations. We assisted the client’s legal counsel in documenting the transaction files and calculating damages.

Securities Violations 
SKC was retained by a law firm to assist in the defense of a stockbroker who was charged with “churning” brokerage accounts. We analyzed the activity in the related brokerage accounts for a three-year period.

Contract Dispute
SKC was retained by a wholly-owned subsidiary of a publicly-traded company to perform litigation support services relative to a contract dispute. Our engagement included interviews of various company personnel, assessment of the company’s compliance with the terms of the contract, reconstruction of voluminous accounting records over a period of two years and preparation of reports to legal counsel summarizing significant issues noted during the course of our engagement including weaknesses in the company’s internal control system. 

Contract Dispute
SKC was retained by legal counsel to assist in the analysis of millions of dollars in provider-prepared medical claims submitted to Maricopa County regarding medical care provided to indigent patients. Our analysis includes the research and development of historical standards for reasonable and customary medical charges.

Contract Dispute
SKC was retained to assist legal counsel in interpreting the contract language contained in a group of multi-level partnership agreements. We performed calculations of the profit and loss allocations through a maze of multiple flow-through entities each containing its own unique methodology for allocating profit and loss to its partners. In addition, we performed calculations for the allocation of the gain on sale of partnership assets using a variety of alternative, hypothetical sale price scenarios.

Contract Dispute
SKC was retained as an expert witness by the state of Arizona to conduct an investigative audit of the books and records of the plaintiffs, which included a group of twenty-six hospitals throughout the state. We applied investigative auditing techniques to analyze the documentation which provided the support for the plaintiff’s damage calculations.

Contract Dispute 
SKC was retained as an expert witness by a large corporation which provides same-day and overnight express delivery services. We were requested to analyze the theories employed to calculate the plaintiff's damages and to analyze the general market conditions which affected this particular industry during the period in question. In addition, we prepared alternative damage theories and calculations for the defendant.

Contract Dispute 
SKC was retained as an expert witness by an out-of-state law firm and its client, a large international bonding insurance company, to conduct a court ordered investigative audit of the books and records of the defendant, a construction contractor. We applied forensic accounting procedures to determine the net profits made on construction jobs in progress during a period of five years.

Contract Dispute
SKC was retained to provide pre-trial and trial support in a lawsuit involving three school districts and two private vendors. Specifically, we analyzed the contract costs both from a net present value methodology and total cash flow methodology. Additionally, we rendered an opinion as to the proper financial statement classification of the contracts in accordance with generally accepted accounting principles.

Contract Dispute
SKC was retained in a multi-million dollar breach of contract claim and its companion multi-million dollar counterclaim. We assisted in developing the contract cost analysis methodology, damage theories and litigation strategy.

Theft, Forgery and Fraud
SKC was retained as an expert witness by the state of Arizona in a state grand jury matter in which we analyzed more than twenty interrelated personal and business bank account records. We used investigative auditing techniques and procedures to these bank records to assist in developing the evidence to support allegations of theft, forgery and fraud.

Embezzlement
SKC was retained by a large not-for-profit organization to investigate a six-figure embezzlement committed by an employee of the organization, and to review the organization’s internal controls over the cash cycles to mitigate the potential for future defalcations.

Shareholder Embezzlement/Fraud
SKC was retained by legal counsel for a closely-held business to assist in determining the amount embezzled by a shareholder of the company over a period of nine years where the majority of the accounting records had been destroyed. We performed forensic accounting procedures to reconstruct available bank records to determine the estimated amount embezzled by this shareholder and performed a net worth analysis on this individual to substantiate our findings. In addition, we employed valuation methodologies to determine the fair market value of the shares of the company owned by this shareholder to effectuate a buy-out of these shares by the company.

Lost Profits
SKC was retained by legal counsel for a large publicly-held supplier of steel products to assist in the evaluation of the damages alleged by the plaintiff as a result of supplying the plaintiff with metal tubing which was thinner than what was ordered. We analyzed the damage calculations prepared by the plaintiff and plaintiff’s expert and the methodologies utilized in these calculations. In addition, we prepared a damage calculation based on our review and analysis of various accounting records and other documentation provided by both the plaintiff and defendants in this matter. 

Product Liability Claim
SKC assisted in developing damage theories in a product liability claim involving a major utility company. The utility company sustained substantial losses due to the replacement of defective materials previously used to transmit energy and damages caused by the defective materials.