A business or an individual may seek to recover lost profits when there has been a breach of a contract, business tort, patent or copyright infringement, a breach of fiduciary duty, or in antitrust cases. The best way for the plaintiff to prove their loss is with expert testimony by an experienced witness, typically a CPA or an economist. The expert witness calculates the profits the plaintiff would have made had it not been for the defendant’s actions. Depending upon the facts of the case, a past and/or future lost profits calculation may be required.
Expert witnesses need the appropriate skills and knowledge to provide an appropriate calculation of lost profits. This involves the ability to identify and obtain the best available data, prepare projections that fit the facts and circumstances of the case, analyze costs, and address any alternate theories or calculations that may be raised by the opposing party.
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