Insolvencies

Evaluating financial reporting and the potential liability of officers, directors and third-party professionals often involves determining at what point and to what extent an enterprise became insolvent. That requires a measurement of assets and liabilities at various times based on proper application of accounting and valuation principles and an understanding of underlying economic values. Such an analysis might also involve evaluation of prospective cash flows, as well as the likelihood and implications of them. Veris has extensive experience in conducting the analyses required for these determinations.

A frequent measure of damages involves the use of deepening insolvency. The measurement of damages under that theory seeks to identify the harm caused by the continuation of operations of an enterprise after the enterprise should have been reported or determined to be insolvent. Deepening insolvency damages calculations require construction of but-for worlds, as well as a comprehensive understanding of the operating and financial consequences of business continuation, as well as the applicable principles of law being applied. Causation matters and issues related to regulatory or market conduct might also be involved.

We have provided expert testimony in a variety of circumstances to either identify the existence of a company’s insolvency or to rebut assertions made by others. We’ve also provided expert testimony regarding the damages representing the economic harm from continuing an enterprise after its insolvency in circumstances in which we have prepared or rebutted the measurement of that harm.