Product liability is when manufacturers or distributors (and others who make products available to the public) are held responsible for the damages those products cause. These types of claims can be based on strict liability or negligence.
Some types of product defects that cause liability in manufacturers and suppliers are design defects and manufacturing defects. Both can cause danger to the customer. In addition, when there is a failure to warn customers of possible dangers in instruction packets, then those marketing defects can also result in liability.
When it comes to product liability, HSNO’s forensic accounting team delivers a reasonable calculation of physical damages, lost profits, extra expense, recall and rehabilitation costs. When clients involve the firm in these claims, HSNO professionals can:
- Establish proper accounting evaluation protocols
- Review and assess all relevant historical documentation
- Assist in on-site examination and inventory observations
- Monitor the recall and rehabilitation process
- Manage information flow to track expenditures and quantify damages
- Categorize, control and sort all costs
- Evaluate loss of market share
- Quantify lost profits and extra expenses
- Provide periodic status and final reports
Products are usually recalled because of defects, contamination or tampering. By quickly understanding and assuming control of the situation in a straightforward and positive manner, damages can be mitigated and public perception can often be mobilized in the proper direction.
The staff at HSNO has worked on a broad range of complex global products liability and recall situations in the food and beverage, pharmaceutical, medical device, chemical and distribution industries (needs to be verified with client for accuracy). With offices around the world and experts well versed in the intricacies of dealing with product liability and recall, HSNO can (depending on the parameters of the assignment) immediately respond with a forensic accounting team that best matches the requirements of the individual situation.