Three Specific Elements for Goodwill Impairment Claims
Federal court dismisses class action complaint in securities fraud litigation for lack of specific allegations regarding the failure to recognize and report material impairment to goodwill values.
United States v. Schiff
Comprehensive expert evidence, including statistical event study, required for government to prove causation in criminal securities fraud case.
City of Omaha, NE Civilian Employees’ Retirement System v. CBS Corp.
A company’s book value exceeding its market capitalization is not a “bright line” test for triggering goodwill impairment, and the court dismissed claims for securities fraud for failing to state a more precise triggering event.
City of Sterling Heights Police & Fire Retirement System v. Vodafone Group Public Limited Co.
Federal court dismisses class action complaint in securities fraud litigation for lack of specific allegations regarding the failure to recognize and report material impairment to goodwill values.
First Case on Asset-Backed Securities Enlists Expert Loss Causation Model
Expert computer model helps prove loss causation in federal claims of fraud regarding asset-backed securities.
Expert Event Study ‘Almost Obligatory’ in Securities Fraud Litigation
Expert regression analysis and event study survives motion for summary judgment on plaintiff’s securities fraud claims, having proved sufficient causal links between defendants’ alleged misrepresentations regarding liquidity crisis and eventual stock declines.
‘Fatal Flaw’ in Securities Litigation Is Lack of Expert Loss Causation Evidence
10th Circuit confirms summary dismissal of securities litigation for lack of reliable expert evidence showing a direct causal link between the parent company’s alleged fraud and the subsidiary’s (a telecom company) substantial loss of market value.
AIG Global Securities Lending Corp. v. BOA
Expert computer model helps prove loss causation in federal claims of fraud regarding asset-backed securities.
In re Vivendi Universal, S.A. Securities Litigation
Expert regression analysis and event study survives motion for summary judgment on plaintiff’s securities fraud claims, having proved sufficient causal links between defendants’ alleged misrepresentations re: liquidity crisis and eventual stock declines.
Baffling ‘Hide the Ball’ Tactics in Economic Damages Discovery
Court sanctions plaintiff for frustrating discovery process by failing to reveal sources and methods for calculation of economic damages in $200 million suit for securities fraud.
In re Williams Securities Litigation
Tenth Circuit confirms summary dismissal of securities litigation for lack of reliable expert evidence showing a direct causal link between the parent company’s alleged fraud and the subsidiary’s (a telecom company) substantial loss of market value.
Kingsway Financial Services, Inc. v. PricewaterhouseCoopers LLP
Court sanctions plaintiff for frustrating discovery process by failing to reveal sources and methods for calculation of economic damages in $200 million suit for securities fraud.
Two Economic Damages Cases Dismissed for Lack of Reliable Valuation Evidence
As Nancy Fannon explained in her BVU article last month, “What Every Valuation Expert Needs to Know to Prepare a Lost Profits Calculation,” courts have “set the bar high for opinion evidence offered by the damages expert, rejecting speculative and problematic testimony."
Gordon Partners v. Blumenthal
Hedge fund unable to prove damages from securities fraud without an expert analysis of market conditions and effect of public information on stock prices.
What Makes a Market Efficient? Federal Court Lists Five Factors
Federal court defines market efficiency, the five factors that prove it—and the financial analysis that does (and does not)—meet the burden of proof.
In re Polymedica Corporation Securities Litigation (II)
Federal court defines market efficiency, the five factors that prove it—and the financial analysis that does (and does not) meet the burden of proof.
Another Reason to Hire BV Appraisers: Independent Directors Liable for Improper Securities Disclosures
Court finds that mutual fund directors—including independents—showed “extreme departure” from duty of care by failing to assign fair value to funds’ holdings.
Ongoing Goodwill Valuation and Impairment Testing Shields Professional From Liability for Misrepresentation or Fraud
One of the issues in this securities fraud class action was whether Acterna Corp.’s (Acterna’s) outside auditor, PricewaterhouseCoopers LLP (PwC), was liable for not accurately representing the value of Acterna’s goodwill under the Financial Accounting Standards Board's (FASB's) Financial Accounting Standards No. 142 (FAS 142) and because PwC knew, or should have known, that the goodwill was seriously impaired, but reported that it was not.
In re Xcelera.com Securities Litigation
The U.S. Court of Appeals for the First Circuit affirmed a class certification based on evidenced of an efficient market. The court applied the Cammer Factors to determine if the Fraud on the market theory was appropriate. It gave the most weight to the c ...
Sophisticated Event Study Analysis Illustrates Efficient Market
The U.S. Court of Appeals for the First Circuit affirmed a class certification based on evidenced of an efficient market. The court applied the Cammer Factors to determine if the Fraud on the market theory was appropriate. It gave the most weight to the c ...