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Working for private litigants in some cases and the government in others, NERA experts have over 20 years of experience in providing economic advice and testimony to parties involved in insider trading investigations and litigation. Typically, at least one of the following five issues is entailed in such an analysis:
Since "insider trading" refers to trading while in possession of material non-public information, many insider trading cases involve disputed views as to whether the information at issue was indeed material. The behavior of the company's stock price when the information is ultimately made public is often relevant to a determination of materiality. NERA economists often apply event study techniques to estimate the stock price impact of the information, controlling for market and industry developments that also influence the price.
A related question calling for expert opinion is whether the information at issue was truly non-public when the defendant traded. NERA economists have extensive experience combing through news stories, analyst reports, SEC filings, online message boards, and other information sources to assess whether allegedly non-public information was already in the market.
In civil actions, an estimation of loss avoided from the sale of shares ahead of negative news is likely to be needed. An event study can permit the estimation of the magnitude of the loss due to the negative news, adjusting for the impact of other events and information. The same approach can be taken for estimation of gains from purchases of shares ahead of the release of positive news. A similar approach may be relevant for sentencing proceedings in US criminal trials.
A statistical comparison of the alleged insider trading with the defendants’ historical trading patterns may support or undermine the theory that the defendants were acting on the basis of inside information, rather than for other reasons. NERA economists are experienced in conducting detailed examinations of the trading records of defendants alleged to have engaged in insider trading. We also have experience assessing possible statistical bias introduced by broad monitoring of trading by enforcement agencies.
Sometimes, a private plaintiff seeking to enter into a corporate transaction alleges that insider trades based on advance knowledge of the as-yet-unannounced deal affected the stock price in such a way as to worsen the deal terms for the plaintiff. An example is a lawsuit involving a bidder in a hostile takeover, who might allege that insider purchasers raised the stock price, causing it to overpay or the target to reject its offer. NERA economists have applied econometric techniques to estimate the price impact of share trades in these situations.
Name | Title | Location | Phone | |
---|---|---|---|---|
Dr. Graeme Hunter | Managing Director | New York City | +1 212 345 7724 | graeme.hunter@nera.com |
Dr. Vinita Juneja |
Managing Director
Chair of NERA's White Collar, Investigations and Enforcement Practice |
New York City
London Toronto |
+1 212 345 3148
+44 20 7659 8618 +1 416 868 7314 |
vinita.juneja@nera.com |
Ivelina Velikova | Senior Consultant | New York City | +1 212 345 1160 | ivelina.velikova@nera.com |
Dr. Andrew Carron | Affiliated Consultant |
New York City
London |
+1 212 345 5407
+44 20 7659 8500 |
andrew.carron.affiliate@nera.com |
Title | Type | Author | ||
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Recent Trends in Securities Class Action Litigation: 2020 Full-Year Review | Report | Janeen McIntosh and Svetlana Starykh | ||
Recent Trends in Securities Class Action Litigation: 2018 Full-Year Review | Report | Svetlana Starykh, , et al. | ||
Recent Trends in Securities Class Action Litigation: H1 2018 Update | Report | Svetlana Starykh, et al. | ||
Recent Trends in Securities Class Action Litigation: Q1 2018 Update | Published Article | By Stefan Boettrich and Svetlana Starykh | ||
Expert Analysis: Financial Crisis Anniversary - Trends In Credit Crisis Settlements | Published Article | By Faten Sabry, Sungi Lee, and Linh Nguyen | ||
Securities Class Actions: 2016 Full-Year Review and Mid-2017 Flash Update | Published Article | Svetlana Starykh, et al. | ||
Trends in Canadian Securities Class Actions: 2016 Update | Report | By Bradley A. Heys & Robert Patton | ||
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Title | Date | |||
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Sixth Annual London White Collar Crime Institute | 09 October 2017 | |||
ABA Section of Litigation Annual Conference | 03 May 2017 | |||
5th Annual Securities Litigation & Enforcement Institute | 01 March 2017 | |||
Beyond Insider Dealing: Risks Of Market Abuse In Current Securities Trading | 10 June 2014 | |||
Third Annual White Collar Crime Institute | 19 May 2014 | |||
The Best of NERA 2013 | 23 July 2013 | |||
NERA Inaugural Law and Economics Thought Leader Roundtable | 09 July 2013 | |||
2nd Annual White Collar Crime Institute | 20 May 2013 | |||
The 27th Annual National Institute on White Collar Crime | 06 March 2013 | |||
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Title | Date | Type | ||
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Trends in 2020 Securities Class Actions: Filings Decline, Dismissals Soar, and COVID-... | 25 January 2021 | Press Release | ||
Trends in 2019 Securities Class Actions: Filings Remain High, Resolutions Have Slowed... | 21 January 2020 | Press Release | ||
NERA Economist Provides Expert Analysis and Testimony in United States of America vs.... | 02 December 2019 | Press Release | ||
2018 US Securities Class Action Filings Break New Records; NERA Economic Consulting R... | 29 January 2019 | Press Release | ||
NERA Economic Consulting Opens Office in Miami, Florida | 14 November 2017 | Press Release | ||
Record Increase in 2016 US Securities Class Action Filings Driven by Merger-Objection... | 24 January 2017 | Press Release | ||
NERA Economic Consulting Announces Senior-Level Promotions | 13 October 2016 | Press Release | ||
NERA Economic Consulting Recognized in Who’s Who Legal: Consulting Experts Guide | 06 October 2016 | Press Release | ||
NERA Hosts Inaugural Law and Economics Thought Leader Roundtable | 22 July 2013 | Press Release | ||
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