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.
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.
Averaging Multiple Appraisals Yields Most Reliable FMV
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Valuations Bolster IRS’s Transferee Liability Claim
In transferee liability case, Tax Court finds IRS proved petitioner was liable for causing company’s fraudulent asset transfers and benefitted from intermediary company’s fraudulent transfer; valuations showed company was insolvent at time of transfers.
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.
Perez v. Bruister (I)
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Cullifer v. Commissioner
In transferee liability case, Tax Court finds IRS proved petitioner was liable for causing company’s fraudulent asset transfers and benefitted from intermediary company’s fraudulent transfer; valuations showed company was insolvent at time of transfers.
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 ...
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 ...
Hayden v. Pittendrigh
Court dismisses wife’s claim fraud against the husband, finding that she accepted $1 million for her share in the marital business, based on a limited appraisal, and waited too long after finding out the company sold for $54 million to bring her suit.
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.
Disparity Between Valuations of Hedge Funds of Unlisted Securities Not Misleading by Itself; Self-Dealing Needed for Fraud
Beacon Hill Asset Management LLC (Beacon Hill), an investment manager of hedge funds that invested in mortgage-backed and related securities, allegedly overstated the net asset values (NAV) of three funds from March 2000 through September 2002 by as much as 61.22%.
Lost Profits in Fraud Action Analyzed
The Texas Court of Appeals for the 3rd District considered an award of lost profits as consequential damages stemming from a fraud claim.
Spring Windows Fashions Division, Inc. v. The Blind Maker, Inc.
The Texas Court of Appeals for the Third District considered an award of lost profits as consequential damages stemming from a fraud claim. It permitted recovery for lost profits based on a before and after analysis of overall business profits, the drop i ...
In re Acterna Corp. Securities Litigation
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 St ...
Fraternity Fund Ltd. v. Beacon Hill Asset Management LLC
One of the issues was whether Beacon Hill's valuations were fraudulent because they deviated from valuations done by independent appraisers/brokers.
Damages Award on Federal Securities Fraud Claim Not Speculative
Peter Camplin started Sea Dog Brewing Co. in 1992.
- 1
- 2
- 3
- 4 (current)
- 5