Expert Testimony & Consulting / Securities Class Actions

Securities Class Actions

Investors sometimes sue companies, executives, accountants, and underwriters alleging that important information concerning the companies was omitted or misrepresented, thereby causing the investors to pay too much for the companies' securities. Financial economists assist fact finders in determining whether allegedly omitted or misrepresented information was truly important or material. This is done with the use of event studies or by reference to published academic literature. Financial economists help the parties reach settlements by estimating alleged damages. Alleged damages depend on the amount by which a company's stock price was allegedly inflated and the number of shares that were bought at fraudulently inflated prices.