‘Fraud on the Market’ and the Economics of Securities Litigation Claims in Europe

White Paper, November 2022

A key economic question in securities litigation is how to determine the amount of harm that can be attributed to alleged misstatements and that may be considered as damages. Securities litigation and the legal frameworks around the determination of damages have been developing in different jurisdictions in Europe over the past ten years.

This white paper provides a brief overview of the classical approach to determining damages that is prevalent in many European jurisdictions; describes the alternative framework called ‘Fraud on the Market’ that has been commonly accepted in US courts; summarizes the evolving state of legal frameworks in some of the leading European jurisdictions; and explains the economics and practicalities of calculating inflation damages.

Read the white paper


d’Udekem B, Feige C, Van Audenrode M, Vasdeboncoeur H