CRA’s Forensic Services experts were engaged by a company on the verge of an IPO, but which first needed to resolve complex litigation initiated by a minority shareholder. The shareholder had alleged breaches of fiduciary duty and other corporate governance failings, aiming to extract disproportionate financial benefits as a condition of allowing the IPO to proceed.
Our team of licensed private investigators meticulously gathered and analyzed open-source intelligence (OSINT) and human intelligence (HUMINT), including filing a FOIA request with the FBI. Our investigation revealed an extensive pattern of questionable historical business practices and litigation strategies by the shareholder, including a $160,000 cash payment for “consulting services” to a convicted criminal.
The comprehensive due diligence reports we prepared provided a detailed evidentiary basis that helped counsel effectively challenge the shareholder’s allegations during depositions and other pre-trial proceedings. Counsel confirmed that our findings played a crucial role in securing a ruling that denied the injunctive relief sought by the shareholder.
By mitigating the litigation risks and responding to the alleged governance concerns, we assisted our client proceed with its IPO in a timely manner, achieve substantial liquidity, and unlock billions of dollars in value. This case provides an example of how rigorous forensic analysis can materially assist with the resolution of high-stakes corporate disputes.
The team was led by Kristofer Swanson, Vice President and Forensic Services Practice Leader, and Patricia Peláez, Principal. Both are licensed private investigators, holding Permanent Employee Registration Cards issued by the Illinois Department of Financial and Professional Regulation, as required to furnish certain investigative services.
CRA’s Forensic Services Practice assists in the prevention, detection, and correction of a broad range of risks and potential misconduct, reaffirming companies’ commitment to integrity and exemplary corporate governance. Recent assignments at public companies have included investigating and assessing allegations of financial statement irregularities, fraud, FCPA non-compliance, #MeToo issues, theft of trade secrets, ineffectiveness of SOX controls, and cybercrime. Our independent experts advise companies as they navigate complex challenges, helping to ensure robust compliance and effective risk management frameworks.
