Damage assessment in fraud case

Challenge

A well-known consumer goods manufacturer uncovered fraud by its transportation manager, who was sent to federal prison for taking kickbacks from trucking companies. The company’s insurance provider refused, however, to compensate our client for the cost of over-charges by the carriers. We provided expert support to document and quantify the damages sustained by our client.

Approach

• Analyzed outbound transportation volumes, services and pricing.
• Benchmarked freight rates against those for comparable shipments and lanes, based on proprietary databases and primary research with carriers.
• Prepared expert report presenting analysis and computing the damages sustained due to collusion with truckers.

Results

• Case was settled to our client’s satisfaction, on the courthouse steps.