Securities and Financial Services Litigation & Consulting

Securities Class Action

Consulting and Testimony

Bates Group’s professionals and experts provide consulting and expert testimony on a wide range of significant securities and financial services matters, including class actions. Our experienced team supports our clients in class certifications, trials, Daubert hearings and settlement discussions.

Our areas of expertise include Rule 10b-5, Section 11 and 12, and ERISA claims. Our consulting experts have experience working with datasets containing billions of records, and our competitive rate structure allows clients access to the industry-recognized Bates process at a much lower cost, without any compromise to high quality.

Early Stages of a Case

At the class certification phase, our experienced consulting experts and staff perform analyses related to market efficiency, trading behavior, per-share damage evaluations under different scenarios and putative class member reliance. Analyses include the Cammer factors to test market efficiency, reviewing Plaintiff trading records, calculating profit/loss on a last-in-first-out (LIFO) basis and conducting reviews of the claims for conflicts of interest between potential class members.

Given the Haliburton II decision (Halliburton Co. v. Erica P. John Fund Inc.), litigants can introduce direct price impact analysis. Therefore, event studies, which have long played a significant role in assessing market efficiency, can be introduced during the class certification phase to determine whether an alleged misrepresentation affected stock price, as well as to assess market efficiency. Bates’ consulting experts have experience applying event studies in these contexts and (depending on the case facts) may also supplement the analysis with fundamental financial analysis to assess the impact of alleged misrepresentations. In addition to the statistical analysis of quantitative data, Bates is able to efficiently review the multitude of qualitative data such as analyst reports and public press.

Beyond the Early Stages

If a matter does proceed to litigation, our consultants and experts have assisted in developing the litigation strategies employed by our clients. In particular, we have been asked to develop arguments on liability and to perform more refined damage analyses that may be used in settlement negotiations or at trial. Our experts are often asked to put forward an expert report and rebut the opinions of the opposing expert. Such rebuttal points may also be used to form the basis for Daubert challenges to exclude opposing expert testimony.

Examples of Bates Group‘s Capabilities

Securities Class Action

Engagement Examples
  • Class actions involving individual securities and funds across a wide range of industries

  • Analysis of the market impact of financial misstatements

  • Economic analyses of materiality, reliance, and loss causation

  • Market efficiency and tracing analyses

  • Stock options backdating

  • Market timing allegations in mutual funds

  • Insider trading and manipulation cases

  • Practices such as IPO allocations

  • Price impact of trades

  • ERISA actions alleging imprudent investments

Contact Bates Group

Bates Group is with you every step of the way. Contact us today for more information on how our End-to-End Solutions can help your firm.

Contact Bates Group