Commercial Disputes and General Damages

Greg Eastman

Senior Vice President

Sean M. Kruskol

Vice President

Sean Kruskol coheads Cornerstone Research’s commercial disputes and general damages practice. Mr. Kruskol analyzes large, complex datasets related to commercial litigation and accounting disputes. His expertise includes analysis of economic damages, data analytics, accounting and auditing, healthcare and life sciences, and forensic accounting investigations. He has worked on matters in the entertainment, financial services, healthcare and health insurance, manufacturing, telecommunications, and technology industries.

Mr. Kruskol has served as a testifying expert in matters involving data analytics, damages, and forensic accounting issues.

Breach of contract and damages

Mr. Kruskol’s breach of contract and general damages expertise covers disputes across multiple industries. Select experience includes:

• Testifying at trial on accounting standards and potential lost profit and lost business value damages applicable to a breach of contract claim in a post-acquisition dispute
• Testifying at multiple arbitration hearings on issues of lost profits and lost business value damages
• Consulting on lost profits and profit participation in an entertainment-industry lawsuit

Data analytics

Mr. Kruskol is experienced with SQL and computer-assisted audit techniques (CAATs). Using these tools, he has analyzed big data in a range of commercial disputes, as well as government and internal investigations. Select matters include:

• Testifying on data analytic techniques and results using large datasets in various contexts
• Investigating claims by the U.S. Securities and Exchange Commission (SEC) regarding an alleged financial reporting fraud scheme
• Analyzing billions of transactional records for a large online retailer to assess consumer behavior

Accounting and auditing

Mr. Kruskol has worked on cases involving U.S. Generally Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS), International Standards on Auditing (ISA), and International Financial Reporting Standards (IFRS). Select experience includes:

• Testifying at trial on interpretations and applications of revenue recognition and loss contingency accounting standards
• Evaluating timing and causes of potential damages in an accounting malpractice dispute
• Assessing claims by the SEC of auditor negligence related to an audit of a U.S. manufacturer’s foreign subsidiary
• Assessing claims by the SEC of auditor independence issues

Healthcare and life sciences

Mr. Kruskol testifies and consults on accounting, disclosure, loss causation, and damages issues in healthcare matters. Select experience includes:

• Testifying on large-scale data analytics issues for pharmaceutical companies
• Analyzing damages and loss causation related to a breach of contract for a healthcare revenue cycle company
• Evaluating a health insurance claims company’s profitability over a multiyear period to develop a damages model
• Assessing False Claims Act (FCA) allegations related to Medicaid claims paid by the federal government
• Investigating the historical financial reporting of a healthcare technology company for compliance with GAAP

Forensic investigations

Mr. Kruskol has particular expertise testifying and consulting on issues of alleged earnings management and asset misappropriation schemes, including:

• Testifying on the selection and application of various cash tracing methods
• Investigating an alleged earnings management scheme in a post-acquisition dispute
• Investigating an alleged revenue recognition and financial reporting fraud scheme
• Analyzing customer bank account activity to identify patterns consistent with a Ponzi scheme

Mr. Kruskol is a certified public accountant (CPA), chartered global management accountant (CGMA), and certified fraud examiner (CFE).

Carlyn Irwin

Senior Advisor

Carlyn Irwin is an economic damages and forensic accounting expert with over thirty years of expert witness testimony and litigation consulting experience. She specializes in intellectual property (IP), breach of contract/tort claims, financial forensic analyses, and investigations.

In addition to her expertise in calculating damages, Ms. Irwin has extensive forensic accounting experience. The Securities and Exchange Commission (SEC) has retained her to analyze financial records in matters involving flow of funds, potential asset misappropriation, and Ponzi schemes. She has provided expert testimony in federal, state, and international courts and arbitration settings.

Lexology Index (formerly Who’s Who Legal) has recognized Ms. Irwin as a leading forensic accountant in the legal investigations space, describing her as “extremely thoughtful” and citing her “detail-oriented approach” and “meticulous analysis.” A certified public accountant and certified fraud examiner, she is also certified in financial forensics, in entity and intangible valuations, and accredited in business valuation.

IP disputes

Ms. Irwin testifies on damages claims in patent, trademark, and copyright infringement matters, including multiple federal trials involving trade secret misappropriation damages. She has estimated lost profits, unjust enrichment, and reasonable royalty damages, and analyzed loss causation, apportionment issues, and the implications of “Most Favored Licensee” clauses. Her experience includes:

• Analyzing patent and trade secret damages under Georgia-Pacific, Panduit, and University Computing
• Valuing intangible assets such as patents, trade secrets, trademarks, assembled workforces, non-competition provisions, and client relationships
• Consulting on licensing programs and pre-litigation patent matters

Contract and tort claims

Ms. Irwin analyzes and testifies on loss causation and damages in matters alleging breach of fiduciary duty, product liability, alter ego, Lanham Act violations, false advertising, unfair business competition, and defamation. She has also evaluated compensatory damages and claims for statutory and restitution or disgorgement damages. Ms. Irwin has:

• Served as an expert in high-profile matters involving discrimination claims, as well as allegations of aiding and abetting illegal conduct and violations of federal law
• Provided affirmative and rebuttal trial testimony in calculating damages, including analysis of loss causation issues, and opining on definitions of the but-for world
• Testified in class action matters regarding damages at the pre-certification stage
• Analyzed liability issues in matters alleging breach of fiduciary duty and discrimination

Financial forensic analysis

As a certified financial forensic accountant, Ms. Irwin has extensive experience with reconstructing and confirming financial records, tracing transactions through corporate reporting systems, and reviewing financial records (including tax returns) to assess consistency and reliability. She has consulted on civil and criminal white collar litigation, as well as matters alleging fraudulent conveyances, breach of contract, money laundering and racketeering (RICO), pyramid schemes, and fraud.

In her forensic accounting testimony, Ms. Irwin has addressed allegations related to solvency, financial misstatements, fraudulent/preferential transfers and schemes, and misappropriation of assets. Her work includes:

• Testifying at deposition and trial regarding affirmative defenses that plaintiffs had falsely reported their financial condition
• Retentions by multiple financial institutions to analyze financial transactions allegedly used to launder money and/or facilitate fraudulent customer schemes
• Assessing companies’ solvency and the “reasonable equivalent value” of allegedly fraudulent transfers/conveyances pre-bankruptcy
• Analyzing legal fees and costs for post-judgment reimbursement by the prevailing party

Ms. Irwin’s industry experience includes consumer products, e-commerce, entertainment, financial and professional services, healthcare, life sciences, medical devices, medical services, real estate, retail, software, software as a service (SaaS), sports, and technology. She works with clients and counsel in all phases of the litigation process.

Community engagement

Ms. Irwin is president and member of the board of directors for her local chapter of the National Charity League Inc. She previously served as treasurer and compliance officer.