Case Studies
J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida
Read MoreA product recall ensued after an insured provided baking ingredients to its customer (the claimant) and the ingredients were contaminated. The claimant used the ingredients to make various types of cakes that it sold to other wholesalers, related parties, and to end consumers at its grocery stores. The claimant made a claim for all the raw material on-hand and the selling price of all cakes it made for their end customers.
Following analysis, J.S. Held noted that the claimant failed to consider several issues. First, some types of cakes were able to be re-made before the inventory in the claimant’s grocery store warehouse ran out. As no sales were lost, the claimant would only be eligible for replacement cost. Additionally, the claimant’s analysis failed to consider point-of-sale discounts, un-incurred expenses, as well as product substitution (the claimant sold other cakes and baked goods that were not impacted).
However, the most important finding arose after tracing the inventory quantity through various links and chains and comparing the physical counts of inventory removed from the shelf—there was a discrepancy; the claimant failed to consider that it was asking for the selling price for cakes that it had already received monies for. Cakes that had already been consumed, including birthday and holiday cakes, would likely not be returned, allowing the baker to retain the money received for the goods. As a result of these findings, the claimant’s demand was reduced.
Paula Essick
Vice President
Forensic Accounting - Insurance Services
+1 773 249 9176
[email protected]
> Business Interruption / Lost Profits
We provide specialized expertise in the quantification of damages related to claims and disputes involving business interruption and lost profits. Our team combines their financial expertise and diverse backgrounds to effectively evaluate the insured's/claimant's operations and industry/market-specific factors, to quantify interruptions and lost profits. We are retained to deliver expert services that quickly resolve claims and disputes.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.