David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Most commented posts

  1. Federal health care fraud enforcement efforts recover record amounts — 2 comments
  2. Perhaps $2 Billion Owed Under Music Contracts — 1 comment
  3. Huge Patent Damage Award Reversed — 1 comment
  4. Bear Stearns’ Defendants and Deloitte Face Significant Exposure — 1 comment
  5. House votes to reduce GRATs – Act before the effective date — 1 comment

Author's posts

Practical Lessons from the Oracle vs. SAP Damages Case

In early September 2011, a trial court ordered a new trial involving a jury verdict in which Oracle obtained a $1.3 billion verdict from SAP. By all accounts, Oracle’s verdict is (or actually, was) the largest ever awarded for copyright infringement. The Court summarized copyright damages law as follows: The Copyright Act allows recovery of …

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Permanent link to this article: https://betweenthenumbers.net/2011/10/practical-lessons-from-the-oracle-vs-sap-damages-case/

California Passes Tough Independent Contractor Law

On October 9, 2011, Governor Brown signed into law Senate Bill 459 regarding independent contractors. The law significantly increases the risks and penalties for misclassifying workers as independent contractors by imposing significant penalties on employers found to have engaged in a misclassification, as well as on non-lawyer advisors (like accountants) who advise an employer to …

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Permanent link to this article: https://betweenthenumbers.net/2011/10/california-passes-tough-independent-contractor-law/

IRS amnesty regarding independent contractors deserves analysis

Many small businesses attempt to save taxes and employee benefit costs by classifying their workers as independent contractors. When business owners classify workers as independent contractors they do not pay the employer’s share of Social Security and Medicare costs, state employer taxes, state unemployment insurance taxes, and workers’ compensation insurance premiums. Independent contractors also do …

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Permanent link to this article: https://betweenthenumbers.net/2011/10/irs-amnesty-regarding-independent-contractors-deserves-analysis/

Goodwill Impairment Tests Become Easier

The Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2011-08, entitled “Testing Goodwill for Impairment”. This amends guidance in Generally Accepted Accounting Principles (GAAP) Topic 350 involving goodwill and other intangible assets. Because early adoption is allowed, and the new guidance simplifies significantly the current procedures, expect the new guidance to be widely implemented …

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Permanent link to this article: https://betweenthenumbers.net/2011/09/goodwill-impairment-tests-become-easier/

Surprising Survey Covering SEC Whistleblower Program

Accounting and consulting firm BDO USA, LLP conducted an August 2011 annual national telephone survey entitled “The 2011 BDO Board Survey”. Interviewers spoke directly to 101 board members for public companies with revenues ranging from $250 million to $750 million. Although the survey covered other corporate governance matters, this post involves required whistleblower reporting systems. …

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Permanent link to this article: https://betweenthenumbers.net/2011/09/surprising-survey-covering-sec-whistleblower-program/

$535 million U.S. Loan to Solyndra was predicted to be a failure

Solyndra was a manufacture of solar cells based in Freemont California. In August & September 2011, Solyndra ceased all business activity, filed for Chapter 11 bankruptcy, and laid off all employees. The federal government is Solyndra’s largest creditor, having made the company a $535 million loan guarantee. The interesting thing about this loan is not …

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Permanent link to this article: https://betweenthenumbers.net/2011/09/535-million-u-s-loan-to-solyndra-was-predicted-to-be-a-failure/

Daubert & Kumho Expert Challenges Increase, Moving Away From Their Original Purposes

PricewaterhouseCoopers (PwC) issued a study of what has occurred with financial (usually damages) experts since the 1999 Supreme Court decision in Kumho Tire Co. vs. Carmichael clarified that the Daubert criteria for challenges to expert witnesses extended to non-scientific experts. The reliability of underlying data is the most frequent reason why testimony is excluded. This …

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Permanent link to this article: https://betweenthenumbers.net/2011/07/daubert-kumho-expert-challenges-increase-moving-away-from-their-original-purposes/

Disgorgement Returned As A Monetary Remedy In Delaware Cases

Although the case at issue involves insider trading, the limitations involving disgorgement as a monetary remedy could be applied to many other circumstances. The Delaware Supreme Court took little time in reversing a lower court decision that could have had widespread effects. Thus, Delaware law on this point returns to a classic election of remedies …

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Permanent link to this article: https://betweenthenumbers.net/2011/07/disgorgement-returned-as-a-monetary-remedy-in-delaware-cases/

Most Debt-Limit Debate Ignores the Real Issues

Yesterday, we initiated a new poll regarding the topic that is dominating current financial news. However, while the poll does address the question of tax increases vs. spending cuts, any poll limited to a single question on this difficult subject cannot address the full issue. The real issue is the deficit. Borrowing is only required …

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Permanent link to this article: https://betweenthenumbers.net/2011/07/most-debt-limit-debate-ignores-the-real-issues/

Nortel bankruptcy patent auction is biggest technology patent sale ever

Nortel’s patent portfolio was recently auctioned. The final cash price is a surprisingly high $4.5 billion for around 6000 patents and patent applications. The auction process and participants are described in this article. Nortel described the package as: … more than 6,000 patents and patent applications [covering] wireless, wireless 4G, data networking, optical, voice, Internet, …

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Permanent link to this article: https://betweenthenumbers.net/2011/07/nortel-bankruptcy-patent-auction-is-biggest-technology-patent-sale-ever/