Litigation Services Handbook: The Role of the Financial Expert

by Roman L. Weil, Daniel G. Lentz, Elizabeth A. Evans

Overview

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.

Product Details

ISBN-13:	9781119363187
Publisher:	Wiley
Publication date:	04/05/2017
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	1440
File size:	31 MB
Note:	This product may take a few minutes to download.

About the Author

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.

Read an Excerpt

Financial experts increasingly offer litigation services to lawyers. These professionals need a comprehensive reference book such as this Handbook. The first and second editions of this Handbook appeared in 1990 and 1995, respectively, and we've enjoyed both their sales and professional recognition.

This third edition of the Litigation Services Handbook contains 46 chapters (19 new to this edition), all written by experts in their fields. We have enlisted economists and lawyers to write many of the new chapters and have asked all authors to expand and update the case law discussion. We asked authors also to discuss how rapidly developing technology has changed their practice.

We imagined this book to be useful to financial experts engaged in litigation services, the lawyers who engage them, and the litigants who ultimately benefit from the efforts of both groups. We selected the authors for their expertise and asked them to provide our readers with the benefits of their institutional knowledge, experience, and techniques. These experts have not withheld their secrets.

Organization and Writing. This Handbook comprises six major parts, each addressing a different practice area or set of functional tools.

Part I. The Litigation Environment (four chapters) discusses the civil court system, alternative dispute resolution, laws governing expert witness testimony, and how CPAs and economists function within that environment.

Part II. Damages Techniques (ten chapters) addresses the components of damages calculations with new chapters on lost profit calculation, damages to new businesses, punitive damages from an economist's perspective, and tax treatment of damages awards.

Part III. Litigation Tools (two new chapters) discusses communicating with a jury through visual aids and litigation analysis databases.

Part IV. Civil Litigation (23 chapters) addresses specific kinds of commercial cases, categorized in the following subsections:

1.Securities Litigation (four chapters; new chapters on event studies and corporate governance)

2. Intellectual Property (five chapters; new chapters on copyright infringement and royalty audits)

3. Antitrust/ Business Combinations (two chapters)

4. Bankruptcy (two chapters)

5. Construction and Environmental Disputes (three chapters; new chapter on estimating environmental damages)

6. Other Civil Litigation (seven chapters; new chapters on accountant's liability, federally insured banks, and international trade litigation)

Part V. Marital Dissolution (five chapters) includes a new chapter on valuation and division of property.

Part VI. Criminal Cases (two chapters) includes a new chapter on internal corporate fraud.

Also included, and new to this edition, is a Glossary, which includes both business and legal terms.

Common writing practice often uses the word gender instead of the word sex in sentences such as: The law often finds employment discrimination by sex illegal. As language purists, we prefer to restrict the word gender to its technically correct meaning as a classification of a word, from two or more choices, to determine its agreement with referents, modifiers, and grammatical forms. We intend no offense to those who think writers should use the word gender to distinguish male from female human beings and other species. Sometimes we have changed an author's use of the word gender to the word sex. This does not mean that all authors of chapters in this book eschew the word gender to mean sex of a human being; some of them prefer that usage.

Annual Supplement.As with the previous two editions, the publisher plans to produce an annual supplement which will update material in the Handbook that becomes obsolete and which will contain entirely new chapters. As this edition goes to press, we already plan new chapters on revenue estimation, class action, biotechnology, and Internet damages. We invite readers to let us know what new materials they would like to see. Send suggestions to Roman L. Weil at the Graduate School of Business, University of Chicago, 1101 East 58th Street, Chicago, IL, 60637, or by e-mail: roman. weil@ gsb. uchicago. edu.

Relation between Authors and Editors.We acknowledge the cooperation and patience our contributing authors have shown. We do not agree with everything they say. We prefer to have experts giving their own opinions, even when controversial, rather than less specific guidance—like bland committee reports—we can all agree on. Although we tried to define the chapters to avoid duplicate coverage, some duplication remains because we think we better serve the reader by making presentations self-contained.

Acknowledgments.Think of us as traffic cops. We do nothing but point hither and yon every so often. Others do all the heavy lifting. We could not have done this Handbook without Debbie Asakawa, whom we plucked from the unheralded life of a soccer mom, bread baker, and tennis player of modest note. Without her, the editors could not have handled three weddings, two graduations, and two arriving grandchildren during the time critical to this Handbook's production. We paid Debbie enough to take her family to Moscow (Russia, not Idaho) this summer. We didn't give her enough time to enjoy it. Thank you; thank you; thank you.

We also acknowledge Cherie Weil's continued excellent work on developing the index and co-authoring the glossary. Philip Upton provided assistance in the early stages of this edition without which we could not have constructed even the table of contents of this Handbook.

We also thank the following individuals who reviewed chapters from the previous edition and offered suggestions for changes and improvement. They selflessly gave their time and expertise to strengthen the work of others: Christopher Gerardi, Don Glenn, Cate Elsten, Kevin Bandoian, Ted Martens, James Chalmers, Dale Jensen, David S. Williams, Bob Lindquist, Donald Rocen, Mike Urban, Ruth Perez, Mark Moscarello, Jeff Kinrich, Douglas Coppi, and Lester Lowenstein.

Roman L. Weil
Peter B. Frank
Michael J. Wagner

April 2001

Table of Contents

Preface xi

Part I: The Litigation Environment

1. A Dispute Resolution Primer 1.1
Elizabeth A. Evans , Daniel G. Lentz, Roman L. Weil

2. Serving as a Financial Expert in Litigation 2.1
Elizabeth A. Evans, Roman L. Weil

3. Testimony Considerations 3.1

Part A: Daubert Criteria
Douglas E. Branch, Saleema K. Damji

Part B: The Art of Testimony
Daniel G. Lentz

Part II: Developing A Damages Analysis

4. Damages Theories and Causation Issues 4.1
Elizabeth A. Evans, Phil J. Innes, Daniel G. Lentz

5. Ex Ante versus Ex Post Damages Calculations 5.1
Elizabeth A. Evans, Roman L. Weil

6. Use of Statistical Sampling in Litigation 6.1
Mark A. Gustafson, Peter P. Simon

7. Survey Research in Litigation 7.1
Paul J. Lavrakas, Jeffery A. Stec

8. Statistical Estimation of Incremental Cost from Accounting Data 8.1
M. Laurentius Marais, William E. Wecker, Roman L. Weil

9. Econometric Analysis 9.1
Anna C. King, Mohan P. Rao, Christian D. Tregillis

10. Estimating the Cost of Capital 10.1
R. Jeffrey Malinak, Justin McLean

11. Business Valuation 11.1
Joseph J. Galanti

12. Business Interruption Insurance Claims 12.1
Daniel G. Lentz, Robert M. Reeves

13. Lost Earnings of Persons 13.1
Daniel G. Lentz, Elizabeth B. Sandza

14. Expert Analysis of Class Certifi cation Issues 14.1
Christopher Chorba, Mark A. Gustafson, D. Lee Heavner, Peter P. Simon

Part III: Litigation Tools And Techniques

15. Data Management 15.1
Karen M. Cheek, Erik W. Gibson, Cathy Hasenzahl, Matthew P. Jennings, Russell L. Miller, Vincent M. Walden

Part IV: Ancillary Issues In Damages Matters

16. Prejudgment Interest 16.1
Jeffrey M. Colón, Michael S. Knoll

17. Punitive Damages 17.1
Peter A. Bicks, Rachel M. McKenzie, Shasha Y. Zou

18. Tax Treatment of Damages Awards 18.1
Jill Kennedy, Tim Sherman

Part V: Civil Litigation

Intellectual Property

19. Economic Analysis of Nonpatent Intellectual Property Rights and Damages Measures 19.1
Elizabeth A. Evans, Peter P. Simon

20. Patent Infringement Damages 20.1
Landan J. Ansell, John W. Holzwarth, Vincent E. O’Brien, William B. Scally

21. Role of Financial Experts in ITC Section 337 Investigations 21.1
Ryan N. Herrington, Brendan P. Rogers

22. Calculating Infringer’s Profi ts in Trademark, Copyright, and Design Patent Cases 22.1
Christopher P. Gerardi, Dawn R. Hall, Juli Saitz

23. Royalty Audits and Contract Compliance Investigations 23.1
Ben W. Sheppard

Ownership and Business Failure

24. Merger and Acquisition Transaction Disputes 24.1
Elizabeth K. Gulapalli, Christen L. Morand, Gregory E. Wolski

25. The Troubled Business and Bankruptcy 25.1
Daniel G. Lentz, Grant W. Newton, Lynda H. Schwartz

26. Alter Ego 26.1
Elizabeth A. Evans, Daniel G. Lentz,

Regulatory Litigation

27. Federal Securities Acts and Areas of Expert Analysis 27.1
Kevin L. Gold, Eric Korman, Ahmer Nabi

28. Economic Analysis in Securities Class Certification 28.1
Michal A. Malkiewicz, Cathy M. Niden, Mohan Rao

29. Monitorships and Deferred Prosecution Agreements: History, Process, and Recent Trends 29.1
Norman J. Harrison

30. Securities Finance Disputes 30.1
Edmon W. Blount, Eric B. Poer, Tiko V. Shah

31. Antitrust 31.1
Amy W. Ray, Christopher D. Wall

32. Federal Contract Disputes 32.1
Andrew G. Artz, Sajeev D. Malaveetil

Construction and Real Property Disputes

33. Construction Claims 33.1
Bilge Astarlioglu, Stephen P. Lechner

34. Real Estate Litigation 34.1
Mariano S. Borges, Steven A. Klett, Mark R. Molepske, Michael E. Straneva

Other Civil Litigation

35. Accountant Liability 35.1
Mark A. Carlson, Thomas H. L. Selby

36. Executive Compensation in the Litigation Setting 36.1
Eli Bartov, Lynda H. Schwartz

37. Covenants Not to Compete (“Noncompete Agreements”or “NCAs”) 37.1
Elizabeth A. Evans, Kevin F. Rasmussen, Roman L. Weil

38. Employment Litigation 38.1
Christopher Haan, Elaine Reardon, Ali Saad

39. Fair Lending Litigation 39.1
Joshua Garcia, Valerie L. Hletko, H Joshua Kotin, Benjamin P. Saul

Part VI: Criminal Matters And Investigations

40. Tax Fraud: Criminal Cases 40.1
Edward M. Robbins Jr.

 

41. Financial Statement Investigations 41.1
Dean C. Bunch, Karen M. Cheek, Desi Ivanova

42. Health Care Fraud and False Claims Act Damages 42.1
Frank E. Correll Jr.  Thomas A. Gregory, Gregory M. Luce, Karen A. Makara

43. International Investigations: Successful Planning and Execution 43.1
Sergio P. Negreira

Part VII: Family Law

44. Family Law Services 44.1
Donald A. Glenn, Charles A. Burak,

About the Editors

About the Contributors

Index

What People are Saying About This

Lisa Doble Johnson

An exceptional compilation of resources available to those looking for financial and industrial information on the Internet. Those quite experienced with Internet research as well as those just starting out will find helpful information in this book.
—(Lisa Doble Johnson, Vice President Research Mercer Capital)

From the Publisher

An exceptional compilation of resources available to those looking for financial and industrial information on the Internet. Those quite experienced with Internet research as well as those just starting out will find helpful information in this book. —Lisa Doble Johnson, Vice President, Research Mercer Capital

"This book will save the appraiser significant time when looking for pertinent data. A great resource to increase the quality of work product and credibility of the appraiser's conclusions." —Michele G. Miles, Esquire Executive Director, Institute of Business Appraisers

This is a highly practical reference tool for any business appraiser or financial advisor. The authors are two of the best-known business valuation research professionals in the United States. —Shannon Pratt, CFA, FASA, MCBA Managing Director, Willamette Management Associates

Eva and Jan have organized an amazing breadth of resources available on the Internet. No financial professional should try to do research without reviewing this book. It will make your research more efficient and expansive if you use the sources highlighted here. —Z. Christopher Mercer, CEO, Mercer Capital

Through years of financial research and training, these two highly talented and skilled professionals have provided not only a broad listing of available sites, but also a carefully selected and thorough menu to direct the practitioner to essential data for their research engagements.... This book serves as a highly useful and practical tool for every valuation practice, helping all analysts to better understand the enormous research possibilities availed to them through the Internet. With thoughtful, quality guidance, it will help you overcome your research obstacles and maximize your valuable research time. —James L. (Butch) Williams, CPA/ABV, CVA, CBA, Chairman of the AICPA Business Valuation Subcommittee Dixon Odom PLLC

"This work of amazing breadth and depth covers the central issues that arise in financial expert testimony. It is an esential reference for counsel and practitioners in the field." —Joseph A. Grundfest, The William A. Franke, Professor of Law and Business, Stanford Law School, former Commissioner of the United States Securities and Exchange Commission.

Z. Christopher Mercer

Eva and Jan have organized an amazing breadth of resources available on the Internet. No financial professional should try to do research without reviewing this book. It will make your research more efficient and expansive if you use the sources highlighted here.
—(Z. Christopher Mercer, CEO, Mercer Capital)

Shannon Pratt

This is a highly practical reference tool for any business appraiser or financial advisor. The authors are two of the best-known business valuation research professionals in the United States.
—(Shannon Pratt, CFA, FASA, MCBA Managing Director Willamette Management Associates)

Michele G. Miles

This book will save the appraiser significant time when looking for pertinent data. A great resource to increase the quality of work product and credibility of the appraiser's conclusions.
—(Michele G. Miles, Esquire Executive Director Institute of Business Appraisers)

James L. (Butch) Williams

Through years of financial research and training, these two highly talented and skilled professionals have provided not only a broad listing of available sites, but also a carefully selected and thorough menu to direct the practitioner to essential data for their research engagements... This book serves as a highly useful and practical tool for every valuation practice, helping all analysts to better understand the enormous research possibilities availed to them through the Internet. With thoughtful, quality guidance, it will help you overcome your research obstacles and maximize your valuable research time.
—(James L. (Butch) Williams, CPA/ABV, CVA, CBA, Chairman of the AICPA Business Valuation Subcommittee Dixon Odom PLLC)

Editorial Reviews

New edition of a handbook useful to financial experts engaged in litigation services, the lawyers who engage them, and the litigants who ultimately benefit from the efforts of both groups. Weil (accounting, U. of Chicago), Peter B. Frank (accounting consultant), and attorney Michael J. Wagner present 46 contributions that discuss the litigation environment, damages techniques, litigation tools, civil litigation (securities litigation, intellectual property, antitrust/business combinations, bankruptcy, construction and environmental disputes, and other civil litigation), criminal cases, and family law, marital dissolution cases. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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