LECG
Encyclopedia
LECG Corporation was a global expert services and consulting firm with more than 700 employees in 11 countries. It provided independent expert testimony on behalf of corporations, produced authoritative studies for industry, and conducted economic and financial analyses on disputes and issues, and provided strategic advisory and financial advisory services to clients. The company's clients included Fortune Global 500 corporations, major law firms, local, state and federal governments and agencies worldwide. In March 2011 the company was liquidated as it was unable to service its debt obligations going forward.
The firm was renamed LECG in October, 1997 and shortly thereafter it went public through an IPO
on the NYSE. Navigant Consulting, Inc.
(then The Metzler Group, Inc.) purchased LECG in a deal valued at $214 million.
In October, 2000 the private equity fund Thoma Cressey Equity Partners and the management team of LECG announced the acquisition of assets from Navigant Consulting
. At the time, the firm had more than 300 employees and focused on antitrust, deregulation, damage analysis, economic and financial modeling and intellectual property rights.
In 2003 the firm went public again, this time on the NASDAQ. The firm made acquisitions to expand its geographic footprint and expand its lines of business including:
As LECG expanded beyond its original core of economic expert witness work through these acquisitions, some mid- and upper-level economists left the firm for competitors or to form independent firms. For example, one of the firm's founders, Professor Richard Gilbert, left LECG for the firm now known as Compass Lexecon. As another example, Dr. Vince O'Brien and several of the firm's Principals left to form OSKR, a boutique firm that patterned its incentive culture as "LECG 2.0." At a later date, the firm itself severed ties with the most active of the firm's founders, Professor David Teece
. After a cooling-off period, Teece founded the Berkeley Research Group, where many former LECG economists now work.
On August 18, 2009 LECG announced a merger with SMART Business Advisory & Consulting, LLC
, a privately held provider of business advisory services. LECG received e a $25 million cash investment from SMART's majority shareholder, Great Hill Partners in exchange for approximately 10.9 million shares of common stock and 6.3 million shares of preferred stock in the combined company. On March 10, 2010 the merger was finalized and Steve Samek, former CEO of SMART and former US Managing Partner for Arthur Andersen
assumed the role of CEO. On July 1st, 2010, Yuri Rozenfeld assumed the role of General Counsel and Corporate Secretary, replacing Deanne Tully. On August 15th, 2010, Warren Barratt assumed the role of Chief Financial Officer, replacing Steve Fife. The firm closed its Emeryville, California
office and has relocated its back-office to SMART's headquarters in Devon, Pennsylvania resulting in significant operational savings.
In July, 2010, LECG completed its first transaction since completing the merger with SMART, when it acquired Bourne, a UK Tax consultancy.
The term loam assumed from SMART as a consequence of the merger agreement ultimately proved to be the company’s death knell. Continued losses, weak demand, high administration costs and consultant departures, resulted in the forced liquidation of the merged entity so as to satisfy interest and principal obligations due March 31, 2011. Practices were rapidly sold off to meet the deadline as no alternate sources of refinance materialized with the company announcing there would be no proceeds for common stockholders as it winds-down its business. On April 5, 2011, Steve Samek announced his resignation along with that of CFO Warren D. Barratt.
LECG was delisted from the NASDAQ on April 21, 2011, and has employed the Staten Group, a liquidation firm, to help dissolve its business.
History
Faculty from the University of California at Berkeley formed The Law and Economics Consulting Group, Inc. in 1988. Original services included independent expert testimony, authoritative studies and advisory services for regulatory, business and judicial clients.The firm was renamed LECG in October, 1997 and shortly thereafter it went public through an IPO
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
on the NYSE. Navigant Consulting, Inc.
Navigant Consulting
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities...
(then The Metzler Group, Inc.) purchased LECG in a deal valued at $214 million.
In October, 2000 the private equity fund Thoma Cressey Equity Partners and the management team of LECG announced the acquisition of assets from Navigant Consulting
Navigant Consulting
Navigant is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities...
. At the time, the firm had more than 300 employees and focused on antitrust, deregulation, damage analysis, economic and financial modeling and intellectual property rights.
In 2003 the firm went public again, this time on the NASDAQ. The firm made acquisitions to expand its geographic footprint and expand its lines of business including:
- Economic Analysis LLC
- Low Rosen Taylor Soriano
- Silicon Valley Expert Witness Group
- Washington Advisory Group, LLC
- Beach & Company International LP
- Lancaster Consulting, LLC
- BMB Mack Barclay, Inc
- The Secura Group LLC
As LECG expanded beyond its original core of economic expert witness work through these acquisitions, some mid- and upper-level economists left the firm for competitors or to form independent firms. For example, one of the firm's founders, Professor Richard Gilbert, left LECG for the firm now known as Compass Lexecon. As another example, Dr. Vince O'Brien and several of the firm's Principals left to form OSKR, a boutique firm that patterned its incentive culture as "LECG 2.0." At a later date, the firm itself severed ties with the most active of the firm's founders, Professor David Teece
David Teece
David J. Teece is the Chairman of Berkeley Research Group, LLC, and Thomas W. Tusher Chair in Global Business and director of the Institute of Management, Innovation, and Organization at the Haas School of Business, University of California, Berkeley. Teece received his M.A. and Ph.D. in economics...
. After a cooling-off period, Teece founded the Berkeley Research Group, where many former LECG economists now work.
On August 18, 2009 LECG announced a merger with SMART Business Advisory & Consulting, LLC
SMART Business Advisory and Consulting
SMART Business Advisory and Consulting, LLC was a consulting company that served clients throughout the U.S. and globally. SMART was headquartered in Devon, Pennsylvania with locations in the metropolitan areas of Atlanta, Chicago, New York, Philadelphia, and internationally in London...
, a privately held provider of business advisory services. LECG received e a $25 million cash investment from SMART's majority shareholder, Great Hill Partners in exchange for approximately 10.9 million shares of common stock and 6.3 million shares of preferred stock in the combined company. On March 10, 2010 the merger was finalized and Steve Samek, former CEO of SMART and former US Managing Partner for Arthur Andersen
Arthur Andersen
Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG, providing auditing, tax, and consulting services to large corporations...
assumed the role of CEO. On July 1st, 2010, Yuri Rozenfeld assumed the role of General Counsel and Corporate Secretary, replacing Deanne Tully. On August 15th, 2010, Warren Barratt assumed the role of Chief Financial Officer, replacing Steve Fife. The firm closed its Emeryville, California
Emeryville, California
Emeryville is a small city located in Alameda County, California, in the United States. It is located in a corridor between the cities of Berkeley and Oakland, extending to the shore of San Francisco Bay. Its proximity to San Francisco, the Bay Bridge, the University of California, Berkeley, and...
office and has relocated its back-office to SMART's headquarters in Devon, Pennsylvania resulting in significant operational savings.
In July, 2010, LECG completed its first transaction since completing the merger with SMART, when it acquired Bourne, a UK Tax consultancy.
The term loam assumed from SMART as a consequence of the merger agreement ultimately proved to be the company’s death knell. Continued losses, weak demand, high administration costs and consultant departures, resulted in the forced liquidation of the merged entity so as to satisfy interest and principal obligations due March 31, 2011. Practices were rapidly sold off to meet the deadline as no alternate sources of refinance materialized with the company announcing there would be no proceeds for common stockholders as it winds-down its business. On April 5, 2011, Steve Samek announced his resignation along with that of CFO Warren D. Barratt.
LECG was delisted from the NASDAQ on April 21, 2011, and has employed the Staten Group, a liquidation firm, to help dissolve its business.
Competitors
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