SCA CLAIMS

The SCA Platform presents results of court-accepted claim-specific event study analyses that test for evidence of back-end stock price impact on filed claims that allege violations of Rule 10(b)-5 under the Exchange Act of 1934.  Attain qualified and independent analysis of maximum damages per share and a baseline estimate of potential class-wide damages according to the allegations presented in the corresponding SCA complaint. For every filed SCA against a U.S.-listed company, claims professionals can attain claim-specific information to track severity throughout the claim's life cycle

Navigate easily through all Exchange Act claims going back to June 2018.  Drill down and track the claim's maximum damages per share, baseline estimate of potential aggregate damages, and identify claimed stock price drops that do not present verifiable evidence of 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 more accurately estimate severity at different stages of the litigation based on amended allegations.

 

Specialized claims professionals can continually track a baseline estimate of potential class-wide damages through each phase of the class action to limit unfavorable loss reserve developments and track potential tower depletion from the initial pleading stages of an SCA. 

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) 

The SCA Platform provides public company D&O claims professionals with on-demand, robust event study analysis and presents independent estimates of "back-end" price impact to determine the severity of potential class-wide damages throughout the class action litigation life cycle.

©  SAR, LLC. 2020

Bethesda, MD