Hi. Anyone who has played Pokemon competitively will know the unique and wonderful interaction between Sheer Force and Life Orb. In the original games, a Pokemon with Sheer Force + Life Orb can use an ability with a Secondary Effect (like Sludge Bomb, Scald, etc.) and have it boosted not just by 1.3x, but by 1.3x1.3=1.69x. Effectively, both Life Orb and Sheer Force boost that move's power multiplicatively. Source.
The Sheer Force ability considers Life Orb's recoil to be a "Secondary Effect", so Sheer Force negates the recoil completely, and this was implemented correctly in Insurgence. However, when Sheer Force negates Life Orb's recoil, ie. the Pokemon with Sheer Force + Life Orb uses a move with a Secondary Effect, Life Orb's damage boost seems to be ignored.
I have tested this with a Level 70 Feraligatr, max IVs and EVs in Attack with neutral nature. To be sure I encounter Pokemon with the same stats, I fought only Memory Chamber Trainers' Pokemon. See the proof here: http://imgur.com/a/nRqT0
This is a pretty significant bug for PvP battling.