Lost Business Income
An executive and other employees of a film industry market research firm left and started their own rival company. The firm sued, claiming that the departing executive and employees stole confidential information and used it to jump-start their new business and to lure away key staff members and customers. Bruce L. Ross & Company calculated the firm’s lost profits, taking into account its prior performance, the seasonality of the motion picture industry and other factors. It also calculated out of pocket damages, looking at salary adjustments, retention bonuses and additional benefits offered to retain crucial employees. Finally, the team performed a disgorgement calculation, determining the profits the start-up earned as a result of its misappropriation of trade secrets. The case settled at a mediation, in which Mr. Ross participated.