As chair of the Tort Trial and Insurance Practice Section (TIPS), I am very pleased to introduce our members to our Section Sponsor, MDD Forensic Accountants. MDD shares a close relationship with TIPS, and we are so pleased that so many of you have chosen to work with MDD over the years.
We hope that the following helps our members gain a better understanding of how MDD might be able to assist clients in their quantification, investigation, or valuation needs.
Who Is MDD?
MDD is a global forensic accounting firm that regularly provides litigation support services and expert witness testimony in courts and arbitrations. MDD frequently provides assistance during the discovery process, mediations, and settlement discussions. MDD has over 80 years of experience working on assignments that span over 800 industries around the world.
What Are MDD’s Areas of Expertise?
The following provides a brief overview of some of MDD’s areas of expertise. For a complete overview, visit https://www.mdd.com.
- Damages Quantification: MDD has expertise in all areas of damages quantification, including business and shareholder disputes, employment litigation, toxic tort, product liability and recall, and personal injury/wrongful death.
- Construction Litigation: MDD provides support and advice regarding surety bonds (financial investigations/analysis and claims evaluations).
- Fraud Investigations: MDD’s experience in this area includes asset tracing, kickbacks and misappropriation, fraudulent conveyance actions, preferential payments, financial condition analysis, and regulatory-related investigations.
- Valuation Matters: MDD provides litigation support with acquisition/disposition of business, divorce matters, shareholder disputes, and succession planning.
What Types of Cases Has MDD Handled?
- Misrepresentation of Financial Performance of a Franchise: MDD was retained by a law firm and insurers to review the economic damages at a titanium dioxide plant (plaintiff) as a result of an explosion at a neighboring container depot in South Africa (defendant). The explosion caused damage to the manufacturing facility, resulting in a production loss. MDD’s role was to review the loss of production and the associated value with regard to raw material and selling commodity prices, as well as the associated costs with the damage to the manufacturing facility.
- Product Recall—Defective Packaging: In a matter that was more than five years old, MDD was called upon to measure damages due to a product recall of canned vegetables. The insured was notified by a customer that rust was appearing on canned goods. Upon further investigation, it was determined that the can provider had supplied defective packaging to the insured. As a result, a massive recall of more than two million cans of defective products were withdrawn from major retailers, including Walmart, Target, Costco, Aldi, Kroger, and Albertsons’ brands. MDD inspected warehouses across the United States in order to verify the claimed quantities. It obtained documentation and measured recall costs, including customer credits, storage, handling, destruction, administrative fees, and contractual penalties.
- Intellectual Property—Cell Phone Charger Design Patent Infringement: MDD was engaged on behalf of the plaintiff in a design patent case involving automobile cell phone chargers. The plaintiff sought damages under a profit disgorgement theory. The damages study quantified the total accused sales made by the infringer and analyzed the relevant incremental costs appropriately deducted. The study also addressed other fixed costs potentially considered in a profit disgorgement determination. The MDD professional provided deposition testimony, and the matter settled favorably for the client prior to trial.
- Business Interruption—Fire at Manufacturer: MDD was hired by a law firm to assist in the determination of a business interruption loss involving a manufacturer of office furniture after a fire damaged its inventory and production facility. MDD’s role involved reviewing the manufacturer’s financial records to quantify the value of the lost inventory and the loss of income. The matter eventually proceeded to litigation, and MDD was asked to attend the mediation to provide comments on the report prepared by the other side’s forensic accounting firm. MDD’s investigation uncovered the fact that the insurance claim filed was fraudulent, as the source documents were altered and forged by the manufacturer in order to exaggerate the claim. MDD attended the mediation and was able to successfully establish that the claim was overstated.
- Class Action—General Motors: MDD was retained by General Motors as experts in more than 500 cases involving the auto dealer arbitrations that were mandated by the U.S. Congress. MDD’s involvement included an analysis of financial statements, business valuations, and expert report preparation.
- Shareholder Dispute—Medical Company: MDD was hired by a biomedical company regarding a lawsuit that included, but was not limited to, breach of fiduciary duty, fraud, conspiracy, legal malpractice, and defamation. A claim was presented for delayed wage severance, unpaid accrued benefits, equity grants, annual bonuses, and personal items.
- Cyber Risk—Encryption and Extortion: A firm’s systems were encrypted, and an extortion demand was made. Operations were suspended and/or severely limited for some period of time. MDD measured the loss as was directly related to the event and, more importantly, the turnover made up upon the restoration of systems. MDD also documented the event-related expense, both internal and external.
- Wrongful Death Claim—Bus Accident: MDD was engaged in a matter involving a wrongful death claim for a 67-year-old married male with no children who lived and worked as a plaintiffs attorney in Virginia. He was killed in a bus accident in France while on vacation. MDD’s role involved reviewing the losses claimed by the surviving spouse, including dependency earnings loss (financial support) and loss of Social Security income.
TIPS thanks MDD for its ongoing support and commitment to the Section, and we encourage our members to reach out to our key relationship contacts at MDD for more information on its services and expertise:
Kristine Elkind, CPA, MAFF, CFF, Partner | Orlando, FL | 407-531-1050 | [email protected]
Lisa Morris, CPA, CVA, Partner | San Francisco, CA | 925-627-1385 | [email protected]
Kevin Flaherty, CPA, CVA, Partner | Boston, MA | 617-426-1551 | [email protected]