Wholesale exclusion of expert testimony contravenes Daubert, 2nd Circuit says
One error in an extensive economic analysis does not automatically call into question the entire expert opinion, the 2nd Circuit Court of Appeals recently said in the context of a securities fraud lawsuit involving the drug giant Pfizer. With this pronouncement the appeals court resuscitated a class action that had died after the district court excluded the plaintiffs' loss causation and damages expert under Daubert based on errors in the expert's event study. Deprived of the testimony, the plaintiffs were unable to prove two critical elements of their claim.
Showers v. Pfizer, Inc. (In re Pfizer Inc. Sec. Litig.)
Second Circuit says district court “went astray” when, under Daubert, it excluded entire loss causation and damages testimony of plaintiffs’ expert instead of just eliminating unreliable part; appeals court ruling revives securities fraud class action.
7th Circuit Proposes Solution for Loss Causation Conundrum
7th Circuit agrees with defendants that plaintiff expert’s leakage loss-causation model failed to account for firm-specific, nonfraud factors that could have affected stock price movement and orders new trial applying court’s burden-shifting approach.
Chancery Decries Accounting Firm’s Compromised Valuation
Chancery says major accounting firm’s merger-related appraisal represents “new low”; to achieve client’s goal of zero corporate tax liability, firm abandoned sound prior approaches and simply copied another accounting firm’s report and called it its own.
Fox v. CDx Holdings
Chancery says major accounting firm’s merger-related appraisal represents “new low”; to achieve client’s goal of zero corporate tax liability, firm abandoned sound prior approaches and simply copied another accounting firm’s report and called it its own.
Fraud Litigation Highlights Dispute Over ‘Market Efficiency’
Court rebuffs Daubert challenge to investor expert’s efficient market opinion, saying securities law only requires showing that false statements affected stock price and caused loss to investors, not that market perfectly reflected all public information.
Glickenhaus & Co. v. Household International, Inc.
7th Circuit agrees with defendants that plaintiff expert’s leakage loss-causation model failed to account for firm-specific, nonfraud factors that could have affected stock price movement and orders new trial applying court’s burden-shifting approach.
In re Groupon Secs. Litig.
Court rebuffs Daubert challenge to investor expert’s efficient market opinion, saying securities law only requires showing that false statements affected stock price and caused loss to investors, not that market perfectly reflected all public information.
Court Sanctions SEC’s Novel, Alternative Disgorgement Measure (SEC v. Wyly I)
In lengthy, complex, and “highly unusual” securities fraud case involving numerous offshore trusts to affect tax deferral, court approves SEC’s alternative disgorgement calculation based on trading profits from the sale of registered securities.
Court Sanctions SEC’s Novel, Alternative Disgorgement Measure (SEC v. Wyly II)
In “highly unusual” securities fraud case involving numerous offshore trusts to enable defendants’ tax deferral scheme, court finds SEC’s disgorgement calculation based on unpaid taxes does not violate Tax Code and is best measure of ill-gotten gains.
SEC v. Wyly (I)
In lengthy, complex, and “highly unusual” securities fraud case involving numerous offshore trusts to affect tax deferral, court approves SEC’s alternative disgorgement calculation based on trading profits from the sale of registered securities.
SEC v. Wyly (II)
In “highly unusual” securities fraud case involving numerous offshore trusts to enable defendants’ tax deferral scheme, court finds SEC’s disgorgement calculation based on unpaid taxes does not violate Tax Code and is best measure of ill-gotten gains.
Court, Not Expert, Misses Mark on Loss Causation
Appellate court finds district court erred in excluding expert testimony on loss causation and damages in non-typical § 10(b) securities fraud case under Rule 702, because proof as to both elements under this scenario is less “complex”; the expert only ha ...
Court Upbraids Expert Who Discusses Subject Outside Area of Expertise
Under Daubert, federal court curtails trial testimony of defendant’s expert finding he lacked the appropriate qualifications; in a case centering on collateralized debt obligations (CDOs), his financial economics expertise is not even “sufficiently proxim ...
Pure Earth, Inc. v. Call
Appellate court finds district court erred in excluding expert testimony on loss causation and damages in non-typical § 10(b) securities fraud case under Rule 702, because proof as to both elements under this scenario is less “complex”; the expert only ha ...
Securities and Exchange Commission v. Tourre
Under Daubert, federal court curtails trial testimony of defendant’s expert finding he lacked the appropriate qualifications; in a case centering on collateralized debt obligations (CDOs), his financial economics expertise is not even “sufficiently proxim ...
Expert’s ‘Aggressively Skeptical’ View Does Not Undermine Disaggregation Analysis
In securities case, the federal court denies the defendants’ post-trial motion to upset the jury’s €765 million verdict, finding the plaintiffs’ expert’s loss causation and damages analysis was not defective; taking an “aggressively skeptical view” of the ...