Lee, Conrad v. EPS Solutions Corporation

Analysis Group Managing Principal Bruce A. Strombom testified on behalf of plaintiffs seeking damages from EPS Solutions in a dispute involving the omission of material facts by the buyer of several privately held companies. EPS was a "roll-up" of more than 30 professional services companies into an entity designed to provide "one stop shopping" for certain business consulting services, and that could ultimately become a public company. Former business owners and employees were compensated for the roll-up transaction with EPS stock, which became worthless after EPS collapsed within 12 months of its creation.

During the arbitration, Dr. Strombom testified on loss causation -- factors that led to the failure of the business and were known by the defendants at the time of the transaction, but not disclosed -- and damages. The arbitrator accepted Dr. Strombom's analysis of the substantial factors leading to EPS's failure, and his valuation of EPS stock and method for calculating damages. The arbitrator then found in favor of our clients on liability, and imposed an interim damage award of approximately $26 million. The defendant's expert had argued for zero damages.

Testifying Experts