Securities Litigation Analytics
Data Analytics in Finance, Economics, and Statistics
Establish a Beachhead
The battle to form and lead securities class actions – especially for 10b-5 actions – is fierce but the reward is significant. Establish a beachhead before others enter the battle.
Evaluate potential opportunities quickly, use tables and charts to bolster your complaint, and instantly have a starting point for settlement discussions.
Fine-tune your event study and damages model. Compliment your securities claims. Transition Your Preliminary Investigation to Expert Opinions.
Establish a Beachhead
The battle to form and lead securities class actions – especially for 10b-5 actions – is fierce but the reward is significant. Establish a beachhead before others enter the battle and be first-to-market. Analytic Focus’s proprietary loss causation event study and expert analysis accelerates a firm’s decision making process enabling them to allocate resources most effectively.
Analytic Focus provides preliminary investigation reports that include a loss-causation event study and an estimate of aggregate damages. These reports allow you to evaluate potential opportunities quickly, use tables and charts to bolster your complaint, and instantly have a starting point for settlement discussions. You can get this report by providing minimal input such as the ticker, a list of the disclosure dates, and a proposed class start date. Our internal system gathers and analyzes the data instantly, allowing us to rapidly respond to your requests.
After your initial investigation, you may require additional expert consulting to fine-tune the event study and damages model. Analytic Focus has experts who can provide these services including loss causation event studies and damages models that incorporate more complex trading volume adjustments, float calculations, and trading models. Our experts can also provide other services to compliment your securities claims such as evaluating market efficiency through analysis of trading volume, analyst coverage, and event studies that link unexpected information, such as earnings surprises, to changes in prices.
Optimize Your Resources with Preliminary Investigation Reports. Our process is built to run rapid reports. We handle all the data analysis dirty work like gathering the stock price data and market index data – then calculating returns and fitting regression models. The loss causation event study goes beyond giving you rapid results. Additional reports give you more information about your case: estimate damages, test the robustness of standard event study assumptions, search for other possible disclosure dates, and present results of a custom event study with assumptions you choose.
The deliverables you would receive for a preliminary investigation include:
- Chart showing market prices of the stock and market index for a period before the first disclosure through 50 trading days after the final disclosure
- Table summarizing the baseline event study including expected, actual, and abnormal stock returns expressed in percentages and per share dollar values
- Table summarizing an aggregate damages estimate including the dollar abnormal change per share and the number of damaged shares from a single trader model for each disclosure date
- Table summarizing the sensitivity of the baseline event study to six potential changes in assumptions
- Table summarizing other dates to investigate from searching for other high abnormal gains or losses in the time period around the dates you provided
Transition Your Preliminary Investigation to Expert Opinions. Rely on experts in finance, economics, and statistics to evaluate your securities claims in detail as they proceed to class certification and beyond. We evaluate the market efficiency for the stock through multiple indicators including:
- Analyst coverage: If many analysts cover a particular stock, one might assume that new information will be monitored closely and reflected in market prices
- Share Turnover: This metric indicates how actively traded a stock is, actively traded stocks are more likely to have investors monitoring new information and incorporating this information into their trading decisions, and thus market prices.
- Event Study: Demonstrate that releases of unexpected information (e.g., earnings surprises) impacts the market price of the shares.
We provide enhanced loss causation and damages analyses:
- Control for other events and information (unrelated to the claims) that may have influenced prices
- Analyze intraday stock price data
- Estimate the impact of the PSLRA 90-day bounce back provision
- Implement trading models that accounting for multiple trader profiles
- Adjust trading volume and share float calculations
- Consider additional appropriate indexes
11467 Huebner Rd #200, San Antonio, Texas 78230
Securities Lead Expert: Sean Malone, Ph.D., Finance
Sean has co-authored a chapter on “Event Studies in Securities Litigation” in the “Comprehensive Guide to Economic Damages, Sixth Edition.” His research has dealt with developing new event study measures for volatility and measuring their performance through Monte Carlo simulation; conducting fixed-income event studies; and developing and analyzing long/short equity factor investment strategies.
Charles D. Cowan, Ph.D., Mathematical Statistics
Adrian M. Cowan, Ph.D., Finance, Econometrics
Pablo Camacho, Ph.D., Economics
Jay Kittiakarasakun, Ph.D., Finance
Marcellus Smith, M.S., Data Analytics
Mauricio Vidaurre, M.S., Finance
John Wald, Ph.D., Economics