Raytheon Class Action
Analysis Group was retained by Foley Hoag in Boston, counsel for PricewaterhouseCoopers, Raytheon’s auditors, in a class action. The plaintiffs, represented by Milberg Weiss, alleged that part of Raytheon’s large stock price drop in 1999 was due to the announcement of accounting irregularities that should have been disclosed in 1998. The accounting irregularities involved contract accounting in Raytheon’s engineering and construction division. Our work centered on rebutting the “but-for” price line and trading model that the plaintiffs’ expert used to estimate damages. The Analysis Group team, led by Managing Principal Laura Stamm
, supported the analysis of our academic expert, Professor Ray Ball
of the University of Chicago. Professor Ball testified at a pretrial hearing in support of the Daubert
motion made by our client to exclude the opposing expert’s analysis. The case was settled before trial. Analysis Group also assisted the client in estimating exposure under different opt-out provisions of the settlement.