The Claims Tool enables D&O claim handlers to attain results of event study analyses to identify claim deficiencies and track 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. 

Track SCA severity through each phase of the securities class action life cycle to mitigate unfavorable loss reserve developments and maintain high standards of claim audit and analysis in a high-frequency event-driven litigation landscape.

The applied statistical parameters that are used to compute estimates of 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 estimate potential liability more accurately.  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.  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). 

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

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Bethesda, MD