Valuation & Litigation Advisory Blog

This month’s issue of Valuation & Litigation Advisory Insights includes the following articles:

• Lucent Sheds Light on Patent Infringement Damages
• Valuing Pass-Through Entities vs. C Corps
• What’s Behind the Veil? Digging for the Truth in Alter-Ego Cases

Lucent Sheds Light on Patent Infringement Damages

Courts are generally loath to disturb a jury’s verdict on damages. But an appeals court threw out a $350 million patent infringement award that wasn’t supported by substantial evidence. This case illustrates the need for detailed expert testimony, which will establish credible evidentiary facts and conclusions and, thus, support a claim for patent infringement damages.

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Valuing Pass-Through Entities vs. C Corporations  

Valuing interests in pass-through entities can be deceptively complex. This complexity stems from a mismatch between the data commonly used to value privately held companies and the tax benefits associated with pass-through entities. But, in recent years, several analytical models have been developed which provide a more accurate picture of a pass-through entity’s economic benefits.     

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What’s behind the veil? Digging for the truth in alter-ego cases 

When a plaintiff can’t collect a judgment from a corporation and seeks to obtain it from the corporation’s owners, it may try to show that the corporation and its shareholders lack separate identities — that is, the corporation is the owners’ alter ego. Key factors in determining an alter-ego relationship include not only this lack of separateness, but also financial dependence of the corporation upon its shareholders or parent, and undue influence upon a corporation.

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