In EFFECTIVE VALUATION & LITIGATION SUPPORT IN CORPORATE SECURITIES LAWSUITS, forensic accounting expert witness Richard M. Squar, CPA, CVA, ABV, CFF, MBA-Taxation, writes:
CASE LITIGATION SUPPORT AREAS
The valuation expert assists legal counsel in the preparation of briefs, either by review of a draft brief prepared and/or focused discussion of issues with legal counsel prior to preparation of a brief. Also, critique of opposing counsel’s briefs are helpful interpretations and insights into the case.Providing document and data lists for discovery is useful to the case. The expert can assist legal counsel to develop clear, incisive, and relevant interrogatory questions maximizing the quality of information received.
Similar to expert witness testimony, the depositions both attended and given by the valuation expert can be invaluable in assisting legal counsel to ask effective questions of opposing experts and present the valuation expert’s opinion in a concise and clear manner.
An office with good research resources and capable assistance is necessary for the valuation expert to be effective. It is not merely a “computerized on-line, easy to get all relevant data” world. There is an art to researching important data and asking the right questions that an effective valuation expert and his or her staff will be excellent at doing.
Appropriate damage calculations and reviewing the computations by the opposing experts are valuable services to the client. The client needs to present its computation of damages (if more favorable than the opposition’s figures) to give the court more convincing evidence of damages advantageous to the client.
So there you have it. One of the best decisions directors can make regarding corporate securities litigation is to assemble a talented professional team. Make sure the valuation expert you choose is effective in both valuation and litigation support, having the traits reviewed above.
Oh, by the way, you need to check out your potential personal liability and insurance coverage.
Richard M. Squar has over 23 years experience in public accounting providing expert advice in the areas of business valuations and litigation support; corporate, partnership and individual tax planning and representation before taxing authorities; and profit enhancement.