Calculating economic damages in securities fraud litigation involves complex analysis of events and other market factors affecting securities prices that requires specialized knowledge and skills. At BVA Group, we have expertise in the calculation of economic damages in cases involving alleged violations of securities laws (such as Rule 10b-5 and Section 11 damages). We have been designated as testifying experts in shareholder derivative securities class action stock price inflation matters as well as fraud-in-the-inducement claims involving benefit-of-the-bargain as well as rescission measures of damages for individual plaintiffs.
BVA is skilled in preparing both statistical analysis and detailed event studies required to compute stock price inflation (or lack thereof) in fraud-on-the-market cases in a reliable and defensible manner. We employ various accepted methodologies to isolate the component of the price change of a security that relates to relevant allegations to establish (or refute) loss causation as well as to quantify damages. Additionally, BVA has developed sophisticated trading models to compute out-of-pocket damages considering both trading (i.e. "in-and-out") damages as well as retention damages.
BVA has been retained by both plaintiff's and defendant's counsel and has objectively assessed and defused economic arguments of opposing counsel and experts. Our testifiers are capable of articulating the complex statistical analysis inherent in securities fraud damages calculations in an understandable and coherent manner. Our experts have also served as consultants in the negotiation and settlement process.