Fideres have been at the forefront of securities litigation developments across the globe. We provide a range of services to suit the different legal frameworks where we operate: from standardized market efficiency and event studies reports in the US and Australia, to more customized damages assessments produced using different methodologies in the UK and the EU.

In the US, Fideres have extensive experience in evaluating plaintiff specific and class-wide damages for numerous Section 10b, Section 11 and Section 14 class actions. We have built an efficient infrastructure to model and estimate damages in a timely manner (within 24 hours). We also provide preliminary opinions on damages and merits for case evaluation. 

Fideres is closely involved in many first of its kind securities litigations outside of the US (UK, Germany, Netherlands, Denmark, etc.). For these jurisdictions (where there is limited or no established precedence), we provide litigation funders and law firms robust and tested support through all phases of litigation, including book-building, data management, evaluation of factual allegations, damages estimation and expert reports.  

Our securities litigation practice focuses on:

  • Efficient preliminary damages modelling
  • Estimation of claim values for book-building and arranging of funding or ATE
  • Collecting, reconciling and processing transaction data
  • Managing Q&A with claimants and custodians and data interpretation
  • Preparation of quantum particulars for pleading
  • Damages assessment for filing and submission
  • Presentation of transaction data and loss report
  • Secure data storage and access
  • Quantum report and expert testimony
  • Plan of allocation

Click here to download a copy of our US Securities Litigation brochure.

 

Oil Future ETF Securities Fraud Litigation

Problem

  • Investigate and identify wrongful conduct of an oil futures ETF manager during a period of extreme market volatility of oil prices in April 2020
  • Develop a damages model to account for transactions occurring after each of the relevant events (including ETF creation, change of investment objectives, suspension of subscription, etc.)
  • Estimate damages both on a class-wide basis and investor-by-investor basis  

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

  • Factual allegations were used for the filing of a complaint which is currently in the class certification stage
  • Lead counsel used our multi-trader model to estimate class-wide damages

US Securities Litigation

Problem

  • Calculation of damages arising on option transactions in the context of 10b5 securities actions where option positions represent a significant part of overall class damages
  • There are a limited number of precedents in the US about relying on efficient market theory to use the fraud-on-the-market doctrine in the context of stock options. Testing market efficiency in the options market is complex
  • Impact of volatility on option damages is inverse to the effect of stock price inflation. This can create damages netting issues for claimants

Solution

  • 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

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

European Securities Litigation

Problem

  • European securities litigation is still developing with no or limited precedents on causality and damage theory
  • Litigation funders and claimants require damages estimates at an early stage during the book-building phase in order to assess viability of the claim
  • Assessing damages on a claimant-by-claimant or aggregate basis requires putting in place a sound system to acquire, store and process claimants’ transaction data (often provided in difficult-to-handle formats such as PDF files and photographs)

Solution

  • Fideres built a traceable database for transaction mapping. We also built, for each claimant, a comprehensive data dictionary through Q&A with claimants
  • We developed damages models to estimate damages using a range of methodologies (based on compensatory or recessionary remedies) and taking into account necessary purchase-sale-pair matchings (e.g. FIFO, LIFO, weighted average)

Result

  • Fideres helped litigation funders to successfully book-build six landmark group actions across England, Germany, Denmark and the Netherlands
  • We prepared damages particulars for the relevant legal filings
  • We collected, reconciled and produced transactional data as required by courts, administators or defendants

We have provided expert economic advice in most of the prominent international competition cases of the last decade

US:

  • Over 100 event studies
  • Market efficiency analysis
  • Opt-out damages reports

UK:

  • Section 90 and 90A damages estimates
  • Damages expert in several ongoing cases

Continental Europe:

  • Damage experts in securities cases in Germany, Netherland and Denmark
  • Large scale data management for settlement distribution

 

Steffen Hennig

Head of Securities Litigation

Founding Partner

Prof. James Spindler

Affiliate Academic Expert

Prof. Martijn Cremers

Affiliate Academic Expert

Prof. Michael Carrier

Affiliate Academic Expert

Prof. Steven Heston

Affiliate Academic Expert