When the seller of an equipment dealership overstated its income on its “audited” financial statements during the sale, the buyer asked us for help. Some of the accounting irregularities were easy to explain to the jury, like how the seller would double-bill customers and record the overpayments as income. Other irregularities, like the failure to record liability for warranty claims, recording certain expenses as fixed assets, and the failure to record inventory reserves, challenged our ability to hold the jury’s interest. Fortunately, we did. The jury agreed with our negligent misrepresentation and breach of contract claims, excused the seller’s failure to pay the promissory notes given for the sales price, and awarded damages for the part of the sales price the seller had previously paid. The federal court awarded our attorneys’ fees and costs.

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