Business valuation professionals often rely on client-prepared financial projections to calculate lost profits and diminution in value. However, courts may exclude expert testimony that’s based on speculative or unreliable projections. To withstand scrutiny, valuators must support their conclusions with market-based evidence and a rigorous analysis of case-specific facts. The landmark case Endless River Technologies, LLC v. TransUnion, LLC (6th Cir., Dec. 18, 2024) serves as a recent example of how expert testimony may be inadmissible due to flawed financial assumptions. Trial court admits valuation evidence In Endless River Technologies, the U.S. Court of Appeals for the Sixth Circuit addressed a contractual dispute. The case involved ownership of the source code for a proprietary platform that served as an online marketplace for insurance leads. In 2014, the parties entered into...