The Elements of Securities Litigation: Understanding the Basics
The previous year has been a busy year for securities litigation and SEC enforcement proceedings. In the first half of 2016, a remarkable growth in SEC enforcement activity was recorded wherein 119 new federal class action securities cases and 868 cases in enforcement proceedings were filed.
In this LIVE Webcast, a seasoned panel of thought leaders and professionals brought together by The Knowledge Group will help the audience understand all the important issues in Securities Litigation. Speakers will also offer them an in-depth discussion of the fundamental elements of this significant topic.
Key topics include:
- Securities Litigation in the 2017 Landscape
- Elements of a Securities Fraud Case
- Global Securities Litigation: An Outlook
- Identifying Alternatives to Litigation
- Recent Court Decisions
James J. Farrell, Partner
Latham & Watkins
- FEDERAL SECURITIES LAWS
- ’33 Act Claims – Section 11 and 12
- ’34 Act Claims – Section 10(b)
- Control Person Liability
- LEAD PLAINTIFF APPOINTMENT
- Appointment Procedure
- “Most Adequate” Plaintiff
- The Presumptive Lead Plaintiff and Lead Counsel
- DISCOVERY STAY & DOC PRESERVATION
- The Automatic Discovery Stay Until Motions to Dismiss Are Resolved
- Document Preservation
- CLAIM ELEMENTS & KEY DEFENSES
- Section 10(b) Elements
- PSLRA’s Heightened Pleading Standards
- Loss Causation
- CLASS CERTIFICATION
- Rule 23 Requirements
- Plaintiffs’ Burden of Proof
- Rule 23(a) – Typicality and Adequacy
- Rule 23(b) – Predominance and Price Impact
- Common Points of Controversy
- PSLRA Damages
- Plaintiffs’ Style Damages Estimates
- One Trader, Two Trader Methodologies
- Offsets and In & Out Traders
Tiago Duarte-Silva, Principal
Charles River Associates
Why event studies are crucial in securities litigation
- In which matters are they useful
- What purposes they serve: Price impact, inflation and damages
- How they work
- Alternatives to event study method in measuring inflation
- Section 10b of Securities Exchange Act of 1934. Section 11 of Securities Act of 1933.
- Requirements of Rule 23(a) and (b)
- Presumption of reliance
- Market efficiency, Basic v Levinson
- Cammer and Krogman factors to assess market efficiency
- What has worked in recent years to defeat presumption of reliance
- Damages: Impact of Comcast decision
Sujay Dave, Senior Associate
The Brattle Group
- Typical allegations in a Securities Class Action case
- Overview of common analyses in Securities Class Actions
- Sample illustration of an Event Study and Damages calculation
- Alternative Methods for disentangling damages due to fraud (e.g., DCF, Earnings response)
Who Should Attend:
- Securities Practitioners
- Outside and In-house Counsel
- Compliance Officers
- Investment Bankers
- Securities Dealers
- Securities Litigators
- Executive Board and Directors
- Private and Public Companies
- Other related/interested Professionals and Organizations
Mr. Dave is a senior associate at The Brattle Group with extensive experience on cases that involve complex economic and financial issues. Mr. Dave’s securities experience includes Rule 10b-5 and Section 11/12 class actions. In these cases, he has led case teams that have addressed market efficiency, loss causation, and estimation of aggregate damages. Mr. Dave has also consulted on Employee Retirement Income Security Act (ERISA) company stock drop and excessive fee cases, municipal bond pricing disputes, and numerous issues related to Residential Mortgage-backed Securities (RMBS).
Mr. Dave has assisted attorneys on all phases of litigation including review of pretrial discovery, development of economic and financial models to analyze damages, critique of analyses by opposing experts and preparation of testimony at depositions, trials, mediations, and arbitrations.
Mr. Dave is a senior associate at The Brattle Group with extensive experience on cases that involve complex economic and …
As a Principal at Charles River Associates, Dr. Duarte-Silva has developed extensive experience in securities and commercial disputes. He also has several years of industry experience valuing equities in financial markets and is an adjunct professor at Boston College’s Carroll School of Management. His expertise in securities disputes covers class certification including assessments of market efficiency, loss causation and materiality, event studies/ price impact analyses, alleged accounting misstatements or omissions, and damages or settlement analyses within Rule 10b-5 and Section 11 matters, insider trading, and investigations of alleged market manipulation. He has worked on behalf of corporations and their officers and directors, private equity firms, financial institutions, auditors, the Securities and Exchange Commission, and other regulators. His case experience includes support at deposition, trial, mediation, and settlement negotiations. He has offered expert testimony in federal and state court.
As a Principal at Charles River Associates, Dr. Duarte-Silva has developed extensive experience in securities and commercial disputes. He also …
James Farrell is a litigation partner in the New York office of Latham & Watkins and has broad experience in a wide variety of complex civil litigation, with particular emphasis on securities and professional liability matters.
During the last 20 years, Mr. Farrell has worked on many large securities class action lawsuits and accountants' liability cases throughout the US and internationally. He specializes in defending cases involving a range of complex accounting issues, such as revenue recognition, securitizations, off-balance sheet entities, reserves and various structured finance transactions. For example, Mr. Farrell defended Arthur Andersen in the multi-billion dollar claims asserted in the consolidated class actions regarding Enron. He has also handled all phases of securities litigation, including matters related to hostile takeovers, management buyouts, directors' and officers' liability, and class action securities disputes. He has defended regulatory matters involving the DOJ, SEC, PCAOB and other government agencies. He has served as lead trial counsel in civil and regulatory matters.
Mr. Farrell has a significant international practice. He has defended clients and conducted internal investigations around the globe, including in the UK, Switzerland, Ireland, Portugal, Mexico, Thailand, the Middle East and Hong Kong. He successfully defended an ICC arbitration involving claims over US$1 billion, and he is certified in the International Standards on Auditing (ISA).
James Farrell is a litigation partner in the New York office of Latham & Watkins and has broad experience in …
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NASBA Field of Study:
Business Law - Technical
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About The Brattle Group
The Brattle Group provides consulting and expert testimony in economics, finance, and regulation to corporations, law firms, and governments around the world. We are distinguished by our credibility and the clarity of our insights, which arise from the stature of our experts, affiliations with leading international academics and industry specialists, and thoughtful, timely, and transparent work. Our clients value our commitment to providing clear, independent results that withstand critical review.
We advise clients and provide expert testimony in a range of matters involving alleged violations of federal securities laws. Our experience includes work in class actions, derivatives, executive compensation, stock options, asset-backed securities, ERISA actions, breach of fiduciary duty, valuation, and bankruptcy. Our expertise is grounded in a thorough understanding of finance and economic theory, accounting, financial products, capital markets, regulation, and industry custom and practice.
About Charles River Associates
Charles River Associates is a leading global consulting firm that offers economic, financial, and strategic expertise to major law firms, corporations, accounting firms, and governments around the world.
With proven skills in complex cases and exceptional strength in analytics, CRA consultants have provided astute guidance to clients in thousands of successful engagements. We offer litigation and regulatory support, business strategy and planning, market and demand forecasting, policy analysis, and risk management consulting.
Our success stems from the outstanding capabilities of our consultants, many of whom are recognized as experts in their respective fields; our close relationships with a select group of respected academic and industry experts; and from a corporate philosophy that stresses interdisciplinary collaboration and responsive service.
About Latham & Watkins
Latham is dedicated to working with clients to help them achieve their business goals and overcome legal challenges anywhere in the world. From a global platform of offices in the world's major financial, business and regulatory centers, the firm's lawyers help clients succeed.