Go Global Retail sued Defendants Dream On Me Industries and Dream On Me, Inc. (collectively DOM) for misappropriation of trade secrets, breach of contract, and unjust enrichment.
Go Global is a “private equity and brand investment firm” that often buys up “distressed retail assets.” It uses its in-house research and industry know-how to try to spot profitable opportunities. When it learned that Bed Bath & Beyond planned to auction off assets of its subsidiary, buybuy BABY (BBBY), Go Global started to structure a bid.
During that process, Go Global—together with DOM and at least thirty potential investors—were granted access to a data room that contained hundreds of documents with BBBY’s financial information, so that they could conduct due diligence.
Using that data, Go Global developed three alleged trade secrets: its Financial Model, its Bidding Strategy, and its Technology Plan.
But the alleged trade secrets alone weren’t enough to win a bid: Go Global needed financing. It eventually turned to DOM. After the parties talked about bidding on BBBY’s assets jointly, Go Global sent DOM a nondisclosure agreement (NDA), and DOM’s Chief Marketing Officer, Avish Dahiya, signed it.
Like Go Global, DOM already had access to BBBY’s historical financial data. But it didn’t have access to Go Global’s Financial Model. So after DOM signed the NDA, it downloaded the contents of Go Global’s data room, which included the Financial Model.
DOM filed a motion to exclude the opinions of Go Global’s expert Alan Schachter.
Accounting Expert Witness
Alan A. Schachter, CPA, ABV, CFF, CVA, CFE has been a senior executive and partner in various consulting and accounting firms for 40 years. His experience includes assisting government agencies, private companies and their counsel with complex valuation, economic damages, and compliance issues. During his professional career, he has been very active in several types of matters that relate to intellectual property, healthcare, financial services, franchising, white-collar criminal defense, personal injury, matrimonial, wrongful termination, partnership disputes, and other civil & criminal matters.
Discussion by the Court
DOM asserted that because Schachter’s damages model relied on terms of a planned joint bid that are “entirely speculative,” it flunked the Daubert test.
But the factual basis is the NDA itself: If DOM had complied with the Non-Circumvention Obligation, then DOM would have had to bid for BBBY with Go Global. Given that DOM won the bid on its own, it isn’t “entirely speculative” that Go Global would have won a bid as DOM’s partner. And any argument that DOM would have chosen not to bid at all rather than bid with Go Global is foreclosed by DOM’s admission that it was “always going to submit a bid for the [BBBY] assets, with or without Go Global.”
Next, DOM challenged Go Global’s lost profits theory on the grounds that Schachter’s calculation “ignores the actual financial performance of BBBY since it was acquired by DOM which shows net losses of approximately $17.4 million.”
But to the extent DOM argues that Schachter relies on “unrealistic assurances provided by Go Global” in preparing his model, that boils down to whether Go Global is correct that it would have turned BBBY profitable had it bought the company with DOM—a question that is firmly within the province of the jury.
The Court permitted Schachter to testify at trial about the opinions in his report.
Held
The Court denied DOM’s motion to exclude the testimony of Go Global’s damages expert, Alan Schachter.
Key Takeaway:
Alan Schachter calculated damages in the form of actual losses, unjust enrichment, and reasonable royalty for the Damages Period. Schachter’s testimony was grounded on sufficient facts and data in accordance with the Daubert standard.
Case Details:
| Case Caption: | Go Global Retail, LLC V. Dream On Me, Inc. |
| Docket Number: | 1:23cv7987 |
| Court Name: | United States District Court, New York Southern |
| Order Date: | September 26, 2025 |
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