SLCG's testifying experts, Dr. Craig J. McCann (UCLA PhD, 1989) and Dr. Edward O'Neal (U Florida PhD, 1993) have testified in state and federal court and in NASD, NYSE, JAMS and AAA arbitrations.
Their state and federal court testimony often deals with shareholder losses due to securities fraud, the value of securities received
in private party transactions, the prudence of trust management, brokerage industry sales practices, suitability and damages.
The arbitrations included disputes over the suitability of investment recommendations, concentrated positions, churning, unauthorized
or excessive trading and margin violations as well as the value of securities received in private party transactions.
Dr. Craig J. McCann is a former academic, SEC economist and Big-5 consultant. Dr. Edward O'Neal is a former academic and SEC economist. In addition to their extensive academic, government and industry experience, Dr. McCann and Dr. O'Neal have many years or experience in large complex litigation. They have published widely and spoken frequently on the critical issues in many of your cases.
Investors primarily litigate disputes with brokerage firms in arbitration forums administered by the Financial Industry Regulatory Authority (FINRA). These disputes often center on allegations that the broker failed to make suitable recommendations, churned an account or failed to disclose material information. Disputes over similar issues involving registered investment advisors (RIAs) are usually litigated before American Arbitration Association (AAA) or Judicial Arbitration and Mediation Services, Inc (JAMS) panels.
SLCG provides analysis to Claimants and Respondents in securities arbitrations and our professionals frequently testify before arbitration panels. Our expert witnesses have been involved in many of the largest, most complex securities arbitrations of the last decade including cases involving hedge funds, CDOs and other structured finance securities, REITs.
Investors who invest through trust departments of banks, rather than through brokerage firms, litigate disputes with their investment advisors in court rather than in arbitration forums, but many of the same issues arise. SLCG professionals testify about the principles of prudent investment management embodied in the Uniform Prudent Investor Act and the Prudent Investor Rule in trust management disputes.
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.
Technical expertise and extensive litigation experience allow SLCG professionals to assist parties involved in complex commercial litigation. Litigation involving antitrust claims, class certification, and economic damages generally require the participation of expert economists at all phases of the legal process. SLCG professionals have extensive experience in all aspects of these types of commercial litigation.
SLCG's professional staff includes former federal regulatory economists with experience at the Securities and Exchange Commission, the Federal Trade Commission, and the Antitrust Division of the U.S. Department of Justice. SLCG has been hired by federal, state, and industry regulators to provide expert consulting services and testimony. We have also assisted individuals and corporations subject to regulatory investigations or prosecution. SLCG professionals have assisted parties involved in DOJ and FTC merger reviews and other antitrust investigations.