Loss of Profits and Earning Capacity
Virtually all coastal businesses in the Gulf States suffered some form of lost profits in 2010. We have handled claims where established businesses saw revenues drop by 50% or more. Many businesses failed, or forced the owners to contribute additional capital. In the past two years we’ve developed innovative systems to quickly compile and measure lost revenue and profits.
The CSSP will now allow a claimant to determine a “benchmark period” instead of being forced to use May through December of 2010. Other rules also allow a claimant to use average revenue of 2007-2009 as opposed to solely using 2009. The class action settlement provides hundreds of calculation options. Our team of lawyers and CPAs thoroughly review each claim and develop the methodology that yields the highest level of compensation. A cookie-cutter approach simply doesn’t work, and may lead to the forfeiture of damages that are legally owed.
The CSSP, while providing potentially higher compensation, is also very complex. Each business claim will require a thorough analysis of financial statements and tax returns. Calculation of book value, EBITDA, and other common indicators may be required. We have the resources to quickly and properly calculate the best method of determining your losses.
If you have experienced a loss of profits or earning capacity due to the oil spill, you may be eligible to file a legal claim against the parties responsible. The knowledgeable oil spill attorneys of Williams Kherkher can help you decide what steps you need to take to protect your business and your family. Call us today at 800-821-1544 for more information.
Causes of Lost Profits
While Louisiana has suffered the strongest effects of the oil spill so far, industries in other nearby states have also been affected. Businesses that have been impacted by the oil spill include:
- Tourism-related businesses: Tourism has greatly decreased along the Gulf Coast since the oil spill first began. This has lead to serious economic losses for related businesses, including hotels, resorts, private beaches, and restaurants.
- Seafood restaurants and distributors: People who sell these food products, whether in restaurants or stores, have been suffering financially. This is due to both a reduced supply of fish, shrimp, and oysters, as well as a reduced public interest in eating these food products due to concerns about their safety following the spill.
- Fishers: Fishing is a significant industry along the Gulf Coast. Unfortunately, the federal government has been forced to impose fishing bans since the oil spill due to concerns about contamination of fish, shrimp, and other types of seafood. This has created significant financial hardship for some fishers and their families.
- Other Businesses. There are plenty of businesses who don’t fall under “tourism” or “seafood” that also suffered substantial losses. The class actions settlement now allows these businesses to seek damages.
- Failed Businesses. Is it fair for an established business that fails due to the oil spill to receive a single year of revenue? We don’t think so, and the new class action settlement now allows for greater damages to failed businesses.
The Gulf of Mexico oil spill lawyers at Williams Kherkher are ready to help you protect your legal rights if your business has been negatively affected. To discuss your grounds for legal action, contact us today by calling 800-821-1544.