CLAIMS TOOL

The Claims Tool enables D&O claim handlers to identify claim deficiencies and track maximum potential severity more accurately on filed claims that allege violations of Rule 10b-5 under the Exchange Act of 1934.  

Attain qualified and independent results of event study analyses that identify deficient claims that allege stock drops that do not exhibit price impact.  Implement efficient loss mitigation claims resolution strategies to reduce defense and cost containment expenses.  SAR delivers more accurate estimates of potential severity by relying on empirical analysis to estimate potential tower erosion to limit unfavorable loss reserve developments. 

"When event studies reveal no statistically significant movement in a company's stock price at either the time that an alleged misstatement was made or the time when it was corrected, it is relatively straight forward to conclude that the alleged misstatement had no price impact." Supreme Court Brief for the United States as Amicus Curiae Supporting Neither Party in Goldman Sachs v. Arkansas Teachers Retirement System, et al. (2021) 

The United States, supporting neither party in this decade-long securities class action, is represented in the Supreme Court by the Securities Exchange Commission and the Department of Justice.

The applied statistical parameters that are used to compute estimates of the total maximum of potentially available class-wide damages abide by the standards of 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 exclude alleged corrective disclosures that do not exhibit price impact and do not warrant attribution of potential aggregate damages according to 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).  Alleged 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 at each phase of the class action life cycle to disqualify alleged stock drops that do not surpass statistical thresholds of transaction causation or price impact.  The Private Securities Litigation Reform Act of 1995 (PSLRA) and Rule 9(b) requires that Plaintiffs plead every element of a securities fraud claim with particularity.  

Equip Financial Lines claims resolution professionals with on-demand event study analysis to identify Rule 10b-5 claim deficiencies and quantify potential SCA severity more accurately throughout the securities class action life cycle.

©  SAR, LLC. 2020

Bethesda, MD