Demented LRH wrote:
Thanks, Smurf. Does Peter have any chance of wnning? Although the assets were undervalued, it may be hard to prove that it was done on purpose. A defendant could claim, I suppose, that it was nothing more than a mistake.
Of course. This happens all the time. Peter estimated future profits of his company & it's products to be much higher, than what his accountant & attorney claimed it was. It's difficult to estimate future profits in a downturn economy, and the company's profits would be different than when the economy was better than it is today.
Separate from that, though, if Peter signed a contract stipulating he would receive income payments, and he did not receive them, then a violation of contract law occurred. I expect this case to be a numbers game. Peter's attorney will hire a CPA & actuary to analyze Peter's financial records & go head-to-head with Leslie Sobol. I expect this to be settled out of court, much like cases in the past, that have involved the SEC & bankruptcy court.
Cases like this should not go to a jury. Judges & juries, generally, lack an understanding of accounting methods & how actuaries arrive at conclusions using math, statistics, and financial theory to assess legal issues involving financial risk & potential profitability. It's brain science. It's like asking a jury to decide who's right in an argument over the law of physics.