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Valuation Analysis Helps Resolve Product Liability Claims without Bankruptcy

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Valuation Analysis Helps Resolve Product Liability Claims without Bankruptcy

The Situation

$25 million co-op owned by local dairy farmers. $2 million of debt.

  • The company had a major product recall (with no consumer injuries).
  • The company faced five lawsuits filed in different jurisdictions around the country. Lawsuits had a face value of $30 million.
  • Like most co-ops, Plainview had no significant assets to pay claims and was only valuable as a going concern to its dairy farmer owners.
  • Product liability insurance totaled $5 million.

How We Advised

  • The company's counsel suggested to one of the five judges handling the litigation that the case would be better handled through mediation, and the judge agreed.
  • The company hired our experts to provide the court and litigants with an objective analysis of what the company could economically contribute to the settlement.
  • The judge convinced the other four judges and all litigants to informally stay all litigation to attempt a mediation.
  • We presented our analysis to the judge and all parties in court.
  • The case was settled, with the company contributing $2 million over time and the majority of the insurance coverage being turned over to the claimants.
  • Claimants received approximately 50% of their valid claims in cash within two years.
  • The company survived and continues to do well.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Investigations and Litigation Support 
When an investigation or litigation involves a company in financial distress, we help uncover the truth behind the numbers, recover assets, and navigate complex legal landscapes. We combine forensic accounting, fiduciary services, and litigation experience to expertly guide business owners, stakeholders, lenders, creditors, regulators, and counsel seeking recovery in distressed situations. 

 

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