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HITS Daily Double

Rakoff rules against Terra on damages

NO “WHAT IF?” IN TRIAL: Guy Hands can forget about collecting a few billion bucks in potential damages after Judge Rakoff decided he wouldn't allow Terra Firma to present its "lost profit" theory of damages. That theory (the bible’s Ed Christman helpfully explains) concerns how much money Terra could’ve made if, instead of buying EMI, it had poured that money into a different investment. Terra's forensic accountant Marianne DeMario said she had calculated lost profits at 4.4 billion ($6.1 billion) during her tstimony without the jury present to determine if her opinions could be used during the trial. But on Wednesday night, Rakoff ruled: "I will not allow her to testify about lost profits. I really think that it is speculative, and I also think the methodology is really flawed.” (10/29a)