SCA CLAIMS

The SCA Platform presents results of the court-accepted event study analysis to track claim severity more accurately on filed claims that allege violations of Rule 10(b)-5 under the Exchange Act of 1934.  Attain a qualified and independent analysis of maximum damages per share and the total maximum of potentially available aggregate damages according to the allegations presented in the corresponding SCA complaint.  For every filed "stock drop" SCA against a U.S.-listed company, insurance professionals can attain claim-specific information to track severity throughout the class action life cycle to estimate potential tower depletion based on a projected range of potential settlement.

Navigate through all "stock drop" Exchange Act claims going back to June 2018.  Drill down and see maximum damages per share on all alleged corrective disclosures and identify claimed stock price drops that do not present verifiable evidence of "back-end" stock price impact.  Know by how much the 90-day PSLRA "look-back" rule will impact aggregate damages.  Get transparency into the value of the claim and attain robust claim-specific support to estimate severity and a range of potential settlement value at different stages of the litigation according to the amended allegations. 

Continually track the total maximum of potentially available aggregate damages and a range of potential settlement value through each phase of the class action life cycle to limit unfavorable loss reserve developments.

The applied statistical parameters that are used to compute estimates of a corporation's SCA 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 and quantitative techniques that support each event study analysis to estimate the total maximum of potentially available aggregate damages abide by the heightened pleading standards of loss causation (5th Cammer Factor) as set forth in Dura Pharmaceuticals, Inc. v. Broudo, No. 03-932, 2005 WL 885109 (U.S. April 19, 2005).  The materialization of an adverse event that may be claimed as a corrective disclosure due to alleged material 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.  The estimate of the total maximum of potentially available aggregate damages is performed under the presumed single and uniform measure of out-of-pocket damages for investors that comprise (or may comprise) a certified class of allegedly damaged shareholders.  Claimed stock price declines that rectify alleged material misstatements or omissions and form the basis of the corresponding fraud-on-the-market allegations necessitate accurate and robust statistical and quantitative analyses of indirect price impact.  The estimate of the total maximum of potentially available aggregate damages is performed under the assumption that the alleged corrective disclosures claimed in the corresponding securities class action complaint have a direct connection with the alleged material misrepresentations.  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). 

The SCA Platform provides Financial Lines complex claims professionals with on-demand, robust event study analysis and presents independent estimates of "back-end" price impact to quantify severity throughout the securities class action life cycle.

©  SAR, LLC. 2020

Bethesda, MD