Complex Business Litigation

Select Cases

BREACH OF CONTRACT / ECONOMIC DAMAGES
The Claimant in arbitration retained StoneTurn to evaluate the economic damages related to an alleged breach of contract involving shares of stock in exchange for services rendered. StoneTurn performed a valuation of warrants, stock options and other securities, issued a written report and provided testimony at arbitration.

ROYALTY DISPUTE
An editor of college textbooks in arbitration retained StoneTurn to test royalty payments made by a publisher of foreign language instructional programs. StoneTurn examined the process by which royalty payments were prepared and calculated, and verified the payments through an analysis of the underlying records. StoneTurn issued a written report and provided testimony at the arbitration concerning amounts due to the author and deficiencies in the calculation processes.

INTERNATIONAL ARBITRATION
StoneTurn acted as expert accountant for clients seeking damages for losses arising from delay and funding issues in respect of a major retail project overseas.  StoneTurn worked with expert surveyors to identify the framework of losses for the complex contractual party relationships and assessing permanent losses.  We appeared in front of a arbitral tribunal and participated in witness conferencing with the opposing accounting expert.

PRICING MATTER
The U.S. Department of Justice retained StoneTurn to perform various analyses in connection with a civil litigation against a number of pharmaceutical manufacturing companies accused of inflating the Average Wholesale Price reported to industry agencies, which impacted Medicare and Medicaid reimbursements. StoneTurn analyzed the Defendants’ sales and cost information, then compared the Average Wholesale Price calculated by StoneTurn to the figures reported by the Defendants over a 10 year period.

BREACH OF CONTRACT / ECONOMIC DAMAGES
A global restaurant franchisor retained StoneTurn to rebut the economic damages alleged by Claimants in a breach of contract dispute. StoneTurn conducted a detailed analysis of the opposing expert’s damages models and reports, and critiqued the model’s key assumptions. StoneTurn produced a written report and provided testimony at arbitration.

NEUTRAL ARBITRATOR:  EARN OUT
StoneTurn was appointed as a neutral determiner by the President of the ICAEW to determine the value of Year 1 and Year 2 of an earn out following the sale of a consultancy business.  Our work involved considering arguments as to the adequacy and policies for determining accruals and provisions, as well as recognizing accrued income from annual contracts.

DELAY CLAIMS
A multinational builder and operator of nuclear power generation facilities retained StoneTurn to determine the economic impact of the suspension of work by the public utility. StoneTurn created an economic model that calculated the impact of the work suspension, and advised our client on the structure and presentation of the billion dollar plus suspension claim to the project owner. StoneTurn also analyzed the suspension and delay claims related to change orders submitted to our client by more than 200 subcontractors, and performed dozens of specific cost audits, including assessments of unabsorbed overhead claims.

SHAREHOLDER DISPUTE
A global financial services company retained StoneTurn to rebut damages asserted by the Plaintiff’s expert in connection with allegations of market timing purchases and redemptions of mutual fund shares over a decade-long period. StoneTurn developed an economic model that incorporated over six million transactions in more than 30 mutual funds to determine whether market timing occurred under multiple scenarios.

BREACH OF CONTRACT / LOST PROFITS
A leading manufacturer of laboratory instrumentation for in-vitro diagnostic applications retained StoneTurn to quantify damages for breach of a contract to design and build add-on components for the Claimant’s diagnostic instruments. StoneTurn determined lost profits based on lost product sales, convoyed sales and additional customer claims.

CREDIT FRAUD: CREDIT SWAP/CMOS
StoneTurn was retained to rebut the Plaintiff indemnifier’s damage claims based on loan defaults in a student loan program insured by the Claimant. Total default loans by all Defendants totaled more than half a billion dollars. StoneTurn separately analyzed each potential cause of loan defaults, including the Plaintiff’s own failed due diligence and monitoring, and exposed analytical gaps in the opposing expert’s analysis.

INTERNATIONAL ARBITRATION
An overseas government engaged StoneTurn to assist in an action brought against it under UNCITRAL rules by a large hospitality corporation. The parties had entered into a contract to develop a hotel resort, and both parties alleged breach of contract. Work involved a review of the $40 million claim for wasted costs and assessment of the counterclaim.

APPOINTMENT AS EXPERT:  ACCUMULATED DEFICIT
StoneTurn acted as party’s expert to opine on the meaning of “Expenses” in an outsourcing contract in relation to the calculation and roll-forward of an accumulated deficit.  The work included considering non-cash items such as depreciation, as well as the issue of financing.  Further, StoneTurn was required to consider whether capital gains should be included.  StoneTurn’s work included calculating alternative bases, taking account of possible break points, and assumptions.

APPOINTMENT AS EXPERT:  COMPLETION ACCOUNTS
StoneTurn acted as party’s expert to review completion accounts provided by the Purchaser in relation to a global business.  StoneTurn’s work involved considering UK and US GAAP accounting, potential changes of policy since acquisition, and arrangements for specific expenses anticipated under the Sale and Purchase Agreement but not quantified at that point.  StoneTurn also advised on the Expert Determination Process.