©  SAR, LLC. 2019

Bethesda, MD

MORE ACCURATE SCA DATA OPTIMIZES DATA-DRIVEN DECISION MAKING TO IMPROVE LOSS MITIGATION UNDERWRITING

SCA CLAIMS SAR empowers senior public company D&O claims professionals with easy-to-use, cloud based, sophisticated econometric tools to quantify severity on filed SCAs that allege violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934. SAR relies on decades of proven expert experience combined with agile cloud-based technology to conduct well-accepted and verifiable event study analysis to analyze complex claims. SAR provides an independent study of price impact to quantify a baseline estimate of potential class-wide damages throughout the life cycle of the filed SCA claim. Our on-going and robust event study analyses identify econometric deficiencies of stock price impact (absence of indirect price impact) on all alleged corrective disclosures to identify material claim deficiencies in a high frequency and event-driven environment.

"We had a data breach. I didn't learn about it until it was too late. Our stock price tanked and investors just filed a securities class action lawsuit... how much is our exposure?  How much could shareholders claim in damages?  Are we covered?

The claims platform provides claim-specific analysis of an insured’s exposure, maximum damages per share, and a baseline estimate of potential class-wide damages based on proven event study analysis that abides by the Private Securities Litigation Reform Act of 1995 (PSLRA). The claims database contains all Exchange Act claims (common equity) going back to June 2018; from the first filed complaint (FIC) through the operative consolidated amended complaint.  Aggregate damages computations are updated to account for changes in the allegations.  Full visibility of econometric results are exhibited through each phase of the class action litigation.  Non-equity Exchange Act claims are performed on specific requests.

UNDERWRITING SAR delivers robust, on-demand, and near real-time (as of the close of the previous trading day) event study analysis to identify and quantify a public company's exposure to adverse events that have materialized during the preceding two years. SAR has company-specific tracking alerts to alert D&O underwriters and brokers of notable changes in SCA exposure based on current market trading statistics. The underwriting tool provides company-specific reports on a near real-time basis of adverse events that may substantiate a potential corrective disclosure on a claim for alleged violations of the Exchange Act and Rule 10b-5.  

Actively monitor your insureds SCA exposure and react faster to potential adverse events that may trigger an event-driven securities class action. Get the critical information you need to evaluate risk more effectively and attain independent quantitative analysis to support limit and pricing changes.

The underwriting tool provides company-specific analysis that quantify SCA exposure.  The tool uses cloud-based processing to efficiently provide estimates of SCA exposure for any public company by identifying adverse events.  SAR estimates the level of securities class action risk of any U.S.-listed company on a near real-time basis by relying on empirical and continuous event study analysis and provides D&O underwriters and brokers approximate loss estimates on a company-specific basis.

The applied statistical parameters that are used to compute estimates of a corporation's exposure abide by the standards of indirect price impact as set forth in Erica P. John Fund, Inc. v. Halliburton Co., 309 F.R.D. 251, 269 (N.D. Tex. 2015). The applied statistical techniques that comprise event study analysis to evaluate potential class wide damages abide by the heightened pleading standards of loss causation as set forth in Dura Pharmaceuticals, Inc. v. Broudo, No. 03-932, 2005 WL 885109 (U.S. April 19, 2005). Claimed stock price declines that correct alleged misstatements or omissions and form the basis of the corresponding fraud-on-the-market allegations necessitate accurate and robust statistical and quantitative analyses of price impact. The materialization of an adverse event or a claimed corrective disclosure due to alleged misstatements or omissions by Directors and Officers of a publicly traded company on a U.S. exchange requires security-specific analyses that control for general market and industry-specific factors, particularly in volatile equity markets.  The Private Securities Litigation Reform Act of 1995 (PSLRA) and Rule 9(b) require that Plaintiffs plead every element of a securities fraud claim with particularity.  Substantive company-specific analysis of stock price impact is an elemental exercise for the 5th and 6th elements of a securities fraud claims - economic loss and loss causation.  See 17 C.F.R. § 240.10b-5 and 15 U.S.C. §§ 78j(b) and 78t(a)