Lit.Econ LLP

About The Firm

Lit.Econ LLP is a consulting firm comprised of professional economists, accountants

and financial analysts providing quality dispute consulting services to law firms and their clients. The Firm was founded by senior dispute consulting professionals from the "Big Five" accounting firms with experience and skills in a wide range of disciplines including economics, accounting, mathematics, finance and statistics. The Firm specializes in providing expertise in the areas of economic analysis, forensic accounting, damage assessment, valuations and expert witness testimony.

Our professionals have provided services to lawyers and their clients in all stages of litigation, arbitration hearings, regulatory proceedings, rate making hearings and contract negotiations. Our aim is to accelerate and enhance counsels' understanding of industry and business issues, problems and opportunities. In addition to providing thorough technical analysis of financial and economic data leading to well-designed damage analyses, our professionals can provide valuable assistance in the discovery process, in evaluating case strengths and weaknesses, in understanding liability ramifications and in developing strategy and damage theories.

Our goal is to provide prompt, effective and high quality service to our clients. We understand the need to be responsive and flexible and to operate with a sense of urgency. Because we specialize in working with lawyers, our professionals are familiar with the legal system and are comfortable working within it. Consequently, we respond to your needs quickly and efficiently throughout the dispute resolution process.

Economic Analysis

The term economic analysis is broad in scope. It covers not only litigation related analysis, but also industry and other microeconomic studies for a variety of clients, including all levels of governmental agencies as well as corporations and partnerships. Economic analysis is not damage assessment, which we consider to be a separate and distinct process.

Our professionals have experience in providing economic and industry studies for business valuations and mergers, market definition and product definition studies for antitrust cases, investigations into the way products and services are made and distributed and the application of time series analysis in a variety of business interruption cases. For government agencies we have examined the supply and demand for such material as uranium and coal, completed studies for moving products and material and determined the value of water to various users.

Damages

Experts and consultants are used by lawyers to both prove and disprove the amount of

damages claimed in business disputes. The lawyer for the plaintiff will utilize an expert to determine damages "but for" some event, while the lawyer for the defense will need support in evaluating the plaintiff's claim, identifying its weaknesses and in some instances, preparing an alternative damage calculation.

Preparing or critiquing a damage claim involves much more than verifying its mathmatical accuracy. It requires the ability to evaluate and assess the assumptions used in the damage model. Do the assumptions and calculations follow similar paths with the facts in evidence? Is the approach to damages consistent with sound business practices and actual events within that industry? Are the key components within the damage model such as revenues, costs and expenses both complete and accurate? Additionally, the financial modeling and statistical methods used must be carefully evaluated and finally, the claim must make both good business sense and be supportable by events occuring in the industry and the marketplace.

Our professionals, with their extensive experience in various aspects of many different businesses, are uniquely qualified to provide the necessary expertise in preparing and assessing damages. Our accountants and economists are experience in working with trial lawyers and they are all seasoned expert witnesses on damages.

Forensic Accounting

In general, forensic accounting refers to the application of accounting disciplines, principles and theories to actual or hypothetical facts at issue in a legal dispute. Resolving legal disputes today is becoming increasingly more complex and demanding. Consequently, lawyers look to the forensic accountant to assist them in interpreting financial data, explaining complex transactions, verifying information, reconstructing books of accounts and tracing money.

The typical accountant works within the world of clearly documented transactions and clear audit trails. The accountant experienced in the unique area of forensic accounting is accustomed to working with incomplete and inaccurate accounting and financial data. Through a variety of methods and techniques such as observation, inquiry, analysis, auditing, statistical analysis and computer modeling, the forensic accountant is capable of reconstructing the transactions of a business. These transactions are often the key elements to resolving business disputes and can be the difference between winning and losing a case.

Our forensic accountants are specialists who can help you uncover what really happened. We testify to the propriety and accuracy of accounting records and have the experience as expert witnesses to effectively present the information in the face of cross-examination.

Valuations

Many disputes require that a value be ascribed to a business, business assets including goodwill, partnership interests, restricted stock, employee stock options and the like. Valuing these items for dispute purposes is in reality no different from valuing them in other circumstances. The facts of the case must be understood, evaluated and analyzed with the final result an opinion of value which is well considered and supported by the facts.

Our professionals have extensive experience in valuing privately-held businesses for mergers and minority shareholder or partner buyouts. In the litigation context we have valued securities for security fraud and 10(b)-5 cases, and valued businesses lost due to actions of another party. Our professionals have experience in determining business goodwill value in cases ranging from condemnation and inverse condemnation proceedings to maritial dissolutions. In addition to experience in valuing of the equity of a business, we have also valued other financial assets including restricted stock, preferred stock, stock options, limited partnership units and underlying assets for tax disputes.

Expert Testimony

Finding the right expert witness can truly make a significant difference in the dispute resolution process. When an expert witness is needed, that need is generally immediate and time can't be squandered looking for someone with the proper experience and credentials. In this important area, technical skills are often not enough. A good expert witness is one who is experienced and can communicate opinions clearly and explain difficult concepts simply.

The professionals at Lit.Econ LLP have testified on many business issues affecting a variety of industries. We possess the necessary mix of technical skill and the ability to explain issues in simple, understandable terms and the professional demeanor and experience needed to stand up under cross-examination. Collectively these are the skills required to be an effective expert witness.