Securities Fraud and Stock Price Movement
Many variables influence securities prices, often in complex, interrelated ways that emanate from activities within and outside corporate environments.
In securities fraud litigations, clients retain us to analyze stock price movements and volatility, and to isolate and evaluate the alleged loss in value attributable to specific events or announcements. We have addressed such client issues by:
- Conducting event studies
- Analyzing loss causation
- Estimating damages
- Assisting in settlement negotiations
For nearly three decades, we have provided strategic and economic consulting and supported expert testimony in some of the largest litigations involving allegations of Securities Exchange Act violations, particularly Section 10b-5 and Section 11. We have assisted clients in multiple pharmaceutical 10b-5 matters, drawing on our economic expertise relating to class, liability, and damages, and in-depth knowledge of health care claims, clinical trial, and adverse event data. We have also worked on a number of white collar securities fraud issues.
We have applied economic analyses that rely on financial asset pricing models to test for “abnormal” stock price behavior, accounting for changes in the industry and stock market. We have assessed the effect of restatements on a firm's financial statements and have measured how those changes would have affected the firm's stock price.
Our professionals and affiliates have provided consulting and testimony related to class certification issues in securities class actions, and have developed a proprietary database of class action settlements as well as a model for guidance in settlement negotiations.
In the context of ERISA class actions, we have analyzed plan participant characteristics, plan financial performance and transactions, and performance benchmarking.
RELATED PRACTICES