Litigation

Litigation support is the process of providing consultation and expert witness services to attorneys in regard to actual or pending cases.  GMMM has more than 30 years of experience in litigation support engagements and has been involved in more than 300 litigation matters.  The types of services we have provided range from the calculations of damages and lost profits in civil matters to the utilization of accounting concepts and investigative skills in criminal matters.

Civil Matters:
Lost profits are typically claimed as an element of economic damages in a litigation setting.  Damage analyses are prepared to provide an estimate of the detriment suffered by the plaintiff as a result of a wrongful act of the defendant.  Lost “net” profits are computed, in general, by estimating the gross revenue that would have been earned but for the wrongful act, reduced by avoided or saved (incremental) costs.  A CPA must possess adequate experience and knowledge in order to perform a lost profit analysis.  This skillset includes knowledge in specialized industries, accounting and tax rules and regulations, financial analysis and modeling, the ability to present complex information or concepts, (either orally or in writing), in a clear and concise manner, and the ability to reconstruct financial data and quantify the impact of events.  Other common types of civil matters include:

  • Trademark infringement
  • Accountant malpractice
  • Business interruption
Criminal Matters:
Fraud investigation is one of the services considered a litigation service.  Cases involving management fraud, money laundering, tax fraud, bankruptcy fraud, securities fraud, and embezzlement continue to be prevalent and are increasing in frequency.  White collar crime involving financial schemes can be quite complex.  The forensic accountant can be instrumental in deciphering the accounting records and explaining transactions and the underlying documents.  The forensic accountant uses the results of his or her analyses to quantify the loss to individuals or entities.  These damage presentations often include not only how much value was unlawfully transferred, but how the funds were used for consumption or the furtherance of any other illegal activity.