Page 31 - Acertaining Economic Damages Calculation

In contrast, although the courts have been consistent in acknowledging that the use of accepted methods,
such as the yardstick method and the before-and-after method to develop revenue and growth rate esti-
mates, can help the expert meet key elements of the Daubert test, the courts have reached different con-
clusions regarding their role in evaluating the reliability of the underlying data supporting the methodol-
ogy employed. Some courts have emphatically stated that questions regarding reliability should be left
to the adversarial process at trial. Others, however, have extended the consideration of admissibility of
expert testimony to also encompass the evaluation of the underlying data used by the expert in the appli-
cation of an accepted method. In doing so, the courts have specifically called out perceived failures on
the part of an expert to analytically establish the comparability of potential yardsticks to the subject and
to consider factors, such as economic, industry, and company-specific issues, when estimating revenues
and growth rates.

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