Massachusetts Federal Court Rejects Disgorgement Theory Based on Alleged Cost Savings Under Chapter 93A

Short summary

A Massachusetts federal court excluded expert disgorgement testimony in a Chapter 93A case, holding that internal cost savings not directly traceable to plaintiff's lost profits cannot be recovered as disgorgement damages. The court distinguished between identifiable profits from wrongful conduct and company-wide efficiency savings. This ruling limits disgorgement as a remedy under Chapter 93A where lost profits are measurable.

• •Court rejected disgorgement of $40M in internal cost savings under Chapter 93A
• •Disgorgement disfavored when lost profits measurement is available to plaintiff
• •Internal efficiency savings not directly traceable to plaintiff's profits are not recoverable

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