Business Interruption & Lost Profits

VERTEX professionals are experienced with accounting, economic, financial, and damages issues that arise in business disputes and commercial litigation. Our team of Certified Public Accountants, Certified Management Accountants, Certified Fraud Examiners, and Certified Financial Forensics, among other finance and accounting professionals, provide economic damages consulting and expert witness testimony services to clients throughout the United States and internationally. We have consulted on hundreds of matters involving business interruption and lost profits claims, and when necessary, have issued and rebutted expert reports and provided expert witness testimony in state and federal courts, as well as in domestic and international arbitrations. We have also presented at mediations.

VERTEX uses industry-recognized approaches to develop business interruption and lost profits calculations aligned to causal events to develop fact-based, supported claims. Our team is well-versed in analyzing complex financial records including but not limited to financial statements, forecasts and projections, and other market, industry, and economic data sets. Our experience spans numerous industries, including insurance and surety, construction, utilities, environmental, pharmaceutical, manufacturing, government contracts, and real estate, among others.

If expert testimony is required, our expertise allows clients to develop a more credible damages calculation that withstands scrutiny of opposing counsel and experts, allowing for a timely and cost effective resolution to disputes.

Select Case Examples:

• Assisted multiple insurance companies with claims across many industries resulting from Hurricanes Katrina, Wilma, Charley, Ivan, Frances, Jeanne, Ike, Gustav, Superstorm Sandy, Matthew and Michael.
• Calculated lost profits and the cost of capital associated with late operation and increased construction costs at an oil refinery in Colombia. Damages were in excess of $2 billion.
• Assisted counsel for an oil refinery quantify lost profits due to alleged tortious interference and bribery related to the sale of slurry. Reviewed and analyzed slurry sales transactions and other oil industry pricing data.
• Assisted counsel for a petroleum company calculate lost profits from a major fire at a storage and shipping terminal.
• Assisted an insurance company in defense of a lost profits claim resulting from the shutdown of a blast furnace at a steel plant caused by a cut power line.
• Analyzed a hotel’s business interruption claims associated with new construction at an adjoining property.
• Assisted an insurance company evaluate the reasonableness of a lost profits claim submitted by a major retailer stemming from alleged defective sprinkler systems.
• Analyzed cost overruns related to cleanup and restoration efforts associated with the dam breach at a storage reservoir used to augment flows for power generation. Evaluated a business interruption claim by a mining company affected by the flood.
• Analyzed cost overruns related to the flooding of a state park caused by the breach of a hydroelectric power plant’s upper reservoir. Analyzed and rebutted business interruption claims submitted by numerous businesses affected by the flood.
• Assisted insurance company client with a large loss claim involving a furnace fire which shut down operations at a brake manufacturer, a supplier to a large international auto manufacturer.