Case Studies

LOST PROFITS OF A CREDIT CARD COMPANY DUE TO A BREACH OF CONTRACT

This matter involves a dispute between a high-end credit card company that provides co-branded marketing services and a global payment processing company.

Accumyn was asked to review and opine on the damages suffered by the credit card company based on claims that the payment processing company breached its contractual and common-law obligations and interfered with the credit card company’s business operations.

Accumyn determined the credit card company’s lost profits as a result of the payment processing company’s actions.  This analysis was based on offsetting the credit card company’s expected program revenues by expected incremental program acquisition and variable carrying costs to derive future profit projections.  These revenues and expenses were determined based on the credit company’s historical operating results, as well as the typical operating margins in the credit card industry.

Accumyn then calculated the credit card company’s out-of-pocket  costs and extra-expenses incurred as a result of the payment processing company’s actions.  This included costs incurred by the credit card company in the process of re-branding its product, retaining its customers, and converting to a new payment network.

Accumyn also determined the internal labor costs incurred by the credit card company in order to ameliorate the damage from the actions of the payment processing company.

Additional analysis included a critique of the opposing experts’ damage calculations

Scott Bayley provided two expert reports and deposition testimony in support of his opinions.