US Securities Litigation

Problem 

  • Fideres developed  a damages model for options, taking into account not only counterfactual stock prices, but also counterfactual option volatility

  • We demonstrated the significance of changes in implied volatility following corrective disclosures and release of news

 

Solution

  • We analyzed the trading history to identify each of the ETF manager’s decisions  which were not compliant with the stated investment policy and were against the best interest of investors in the fund

  • Fideres built but-for indicative prices of the ETF, based on criteria set in the fund’s prospectus

  • We used statistical analysis to identify anomalous tracking errors caused by the ETF manager’s potentially wrongful decisions

 

Result

  • Our client was appointed as lead counsel based on the highest represented damages quantum predominately due to losses suffered on option positions

  • We established overall class-wide damages including damages on options ordinarily not reflected in securities actions