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There is a new Netflix docuseries, Depp vs. Heard, which covers the Johnny Depp and Amber Heard trial—one of the most publicized trials this decade. Whatever personal biases you may have toward the case’s outcome, it’s a compelling case study of economic damages.

Depp’s team presented evidence of his alleged lost earnings due to Heard’s accusations. A forensic accountant took the stand and analyzed Depp’s career trajectory, past earnings, and potential future earnings to estimate the financial impact of the allegations on his career, including presenting this helpful demonstrative to the jury (recreated):

Likewise, Heard’s expert presented evidence of financial losses she allegedly suffered due to Depp’s actions. However, she didn’t have the economic damages or forensic accounting credentials Depp’s expert possessed, which became apparent during her cross-examination.

Lost profits and economic damages are not independent causes of action in litigation. Rather, they are a damages remedy when a legal wrong has caused financial harm.

Quantifying these amounts can be one of the most challenging aspects of a damages case. Calculating hypothetical profits requires deep financial analysis, the application of accepted methodologies, and consideration of market factors.

For more information about…

• Proof and evidence for lost profits
• Ex-ante & ex-post approaches
• Loss of business vs. loss of profits
• Methods for determining economic damages & lost profits

Download “An Attorney’s Guide to Lost Profits and Economic Damages”