Nature of the claim
Our client, a major multinational pharmaceutical company, was the victim of an extortion attempt involving tampering with company product in stores. This led to all company product being withdrawn from the market, refunds being provided to customers returning recently bought product, and new tamper-proof packaging being introduced to distinguish old and new product. The relevant products were out of the market for several weeks, leading to a loss of market share as competitors took advantage of the situation.
Our role
We were engaged to quantify the direct losses and loss of profits that arose from the incident, provide a report setting out the losses and the basis upon which the claim was made, and prepare the submission to insurers to achieve appropriate settlement on a timely basis.
The outcome
The claim was settled on confidential terms, but on a basis that meant the vast majority of the losses set out in our report were repaid by the insurer as part of the settlement.
