Manipulation of inventory receivables
A tech company retained Brattle to provide an expert opinion related to allegations of misleading statements regarding the reporting of production yields. Brattle’s team reviewed and analyzed the customs and practice for reporting procedures in the industry, the company’s supply chain and product initiatives, and sales forecasting during the alleged class period. A detailed analysis of internal sales reports revealed that the company’s sales forecasting was reasonable and consistent, and that variations in the company’s reporting were due to macroeconomic and industry factors. Performing a mapping analysis of the sales forecasting data to the company’s disclosures led to a favorable settlement, far below the plaintiff’s initial claims.