Law360 Interviews Analysis Group’s Jeff Cohen on Investment Arbitration Transparency
July 16, 2019
With awards based on claims of future lost profits climbing into the billions of dollars, arbitral tribunals have come under scrutiny for their lack of transparency around damages modeling. Law360 senior reporter Caroline Simson talked with Analysis Group’s Jeff Cohen about this issue as it receives increasing attention from the different stakeholders in arbitration proceedings.
Cohen noted that to properly calculate lost profits, a good model will probabilistically address future outcomes. However, without access to the underlying data, it is difficult for outside observers to assess if the analyses have been performed correctly.
Mr. Cohen pointed out that this can sometimes mean the economic experts in an arbitration may not face the same scrutiny as in publicly litigated commercial disputes. Mr. Cohen noted that increased transparency can add credibility to the arbitration process through a natural peer review process.