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Securities & Finance

Principals in Brattle’s Securities & Finance Practice provide consulting and testimony related to all phases of commercial litigation and regulatory proceedings, including securities fraud, insider trading, and market manipulation.

We are retained by attorneys in complex securities and finance litigation to provide consulting and testimony on issues related to class certification, causation, market efficiency, materiality, and damages. Our principals and academic advisors have wide-ranging academic qualifications and industry experience. We draw on a broader network of leading academic and industry experts to meet the needs of our clients. Brattle has expertise and experience in matters in the United States, Canada, Europe, Asia, South America, Australia, and New Zealand. We have worked on a range of litigation issues, including:

  • Class action litigation brought under securities laws and ERISA
  • FX trading manipulation
  • EUROBOR and LIBOR manipulation
  • CDS valuation and manipulation
  • Mutual fund market timing
  • Options backdating
  • IPO allocations
  • Contested mergers
  • SEC allegations and insider trading

Some of the noteworthy cases we have worked on include:

  • Starr v. US takings action
  • Lehman bond class action
  • Lehman CDS action
  • Barclays v. Bear Stearns litigation
  • Syncora v. Countrywide RMBS litigation
  • Flagstar mortgage put-back case
  • Madoff feeder fund cases

Areas of Expertise
CASE HIGHLIGHT

Brattle experts support Nobel Prize winning economist Joseph Stiglitz in dispute between Ireland's National Asset Management Agency and successful property manager Patrick McKillen.

NEWS

The Brattle Group is pleased to introduce the seven exceptional experts who became Brattle principals over the past year.

Engagements
REPRESENTATIVE ENGAGEMENTS

Below is a list of representative engagements for our Securities & Finance practice.

Damages estimation
In securities litigation for a national managed care provider, we analyzed economic loss causation, modeled various damage scenarios, and provided a critique of the defendant’s expert reports. Our work assisted counsel for the class in preparing for settlement negotiations. The case settled for $300 million.
Total return swap market-to-market dispute
In a dispute between a hedge fund and a major bank, The Brattle Group was retained to analyze the marking to market and eventual liquidation of a portfolio of syndicated loans underlying a total return swap. We worked with a former loan trader to discuss the liquidity of the secondary loan market in the aftermath of the Lehman Brothers bankruptcy filing, evaluate the reasonability of the bank’s method of marking to market the portfolio assets and of liquidating the loan portfolio through a BWIC auction, and estimate the market value the loan portfolio.
Underwriting loss causation
In the case of Syncora Guarantee Inc. v Countrywide Home Loans Inc., The Brattle Group was retained by bond insurer Syncora to calculate the losses accrued as a result of securitized home equity loan defaults in MBS securitized by Countrywide. Our experts assessed whether the defaults were primarily a result of housing market conditions or of loan defects that went undetected due to a failure by Countrywide to adhere to published mortgage underwriting guidelines. The case settled for $375 million during expert discovery.
Due diligence in securitization and underwriting
The Brattle Group was retained by outside counsel representing the National Credit Union Association (NCUA) to evaluate the due diligence performed by RMBS sponsors and underwriters. In numerous matters, we evaluated the sampling used in due diligence, the results of that sampling, and the post-diligence quality control. These cases settled before trial for, collectively, over $4 billion dollars.
EC investigation of alleged collusion in the market for FX trading
Since 2015, we have advised a global investment bank in connection with the European Commission (EC) investigation of alleged collusion and manipulation of benchmarks in the global markets for foreign exchange (FX) trading. Our analysis has entailed reviewing trader chat data, with the view to identifying anticompetitive information exchange and conduct as distinguished from market making activity. We have also analyzed forex volumes traded between counterparties across different platforms and in different currency pairs during 2008-2012, to estimate bid-ask spreads and revenues associated with FX trading activity. Our analyses have been submitted to competition authorities involved in the global investigation, including the European Commission and the Swiss Competition Authority. Brattle has also been retained to defend class action damages claims brought against the investment bank in the UK and other EU courts.
Real option valuation drug development business
The Brattle Group built real options models for the drug development process for 19 drugs in various stages of clinical progress. We valued the profit split on the potential returns of these drugs between small biotechnology firms and the large pharmaceutical firms with whom they entered into business alliances. We analyzed the terms of the development contracts and the assumptions on revenues, manufacturing costs, clinical trial expenses, cost of capital, and itemized income statement expenses.
Brattle contributes to shareholder victory in Facebook proposed reclassification

On September 21, 2017 Facebook’s board of directors voted to abandon the pending reclassification of the company’s common stock. The reclassification would have issued two shares of non-voting (Class C) stock to every share of regular (Class A) stock and high-voting (Class B) stock. A Brattle expert opined in reports and testified at deposition that academic studies found that the value of firms are lower when the disparity between their controlling shareholders voting power and equity interest (the “wedge”) is larger. He concluded that by increasing Zuckerberg’s wedge, the reclassification would have reduced the value of the Class A shares.

Experts
Principals
Academic Advisor & Other Outside Experts
Peter Easton
Outside Expert
University of Notre Dame, Mendoza College of Business
View Bio
Michael A. Goldstein
Academic Advisor
Babson College
View Bio
Clifford G. Holderness
Academic Advisor
Boston College
View Bio
Michael Klausner
Outside Expert
Stanford Law School
View Bio
Gordon Klein
Outside Expert
University of California, Los Angeles, Anderson School of Management
View Bio
Juhani Linnainmaa
Outside Expert
University of Southern California, Marshall School of Business
View Bio
Dennis E. Logue
Academic Advisor
Tuck School at Dartmouth University
View Bio
Albert Madansky
Academic Advisor
The University of Chicago Graduate School of Business
View Bio
John J. McConnell
Outside Expert
Purdue University, Krannert Graduate School of Management
View Bio
Maureen O'Hara
Outside Expert
Cornell University Johnson Graduate School of Management
View Bio
Paul Pfleiderer
Outside Expert
Stanford Graduate School of Business
View Bio
Ilya A. Strebulaev
Outside Expert
Stanford University
View Bio
Suresh M. Sundaresan
Academic Advisor
Columbia University
View Bio
Michael S. Weisbach
Academic Advisor
The Ohio State University
View Bio
Mark T. Williams
Academic Advisor
Boston University
View Bio
Senior Consultants
Senior Associates
Publications
Article
ICOs: What are they and what does the future hold?
June 22, 2018
Published in Securities Regulation Daily

Brattle Principal Ioannis Gkatzimas and Senior Associate Sujay Dave have written an article on initial coin offerings (ICOs).

Book
Financial Statement Analysis and Valuation
2018
Peter Easton, Mary Lea McAnally, Greg Sommers, and Xiao-Jun Zhang
Published by Cambridge Business Publishers LLC, Chicago. First Edition, 2008, Second Edition, 2010, Third Edition, 2013, Fourth Edition, 2015, Fifth Edition, 2018.
Article
The Johnson Conviction and Fallout for Forex Market
December 08, 2017
Andrew Newman, George S. Oldfield, and Paul Hinton
Published on Law360

Brattle Principals Paul Hinton and George Oldfield have co-authored an article on Law360 discussing the use of criminal prosecution to police trading practices in institutional financial markets.

Publication
Target Date Funds: Economic, Regulatory And Legal Trends
December 08, 2017
Published in Law360
Report
Target Date Funds: Economic Regulatory, and Legal Trends
September 26, 2017
Published by The Brattle Group, Inc.

In the first of a series of papers examining key economic, regulatory, and legal issues related to target date funds (TDFs), Brattle experts Chris Laursen, Ioannis Gkatzimas, and Branko Jovanovic provide an overview of TDFs, report on significant market trends, and summarize recent related litigation.

Article
Calculating Reasonable Royalty Damages Using Conjoint Analysis
August 2017
Published in the American Intellectual Property Law Association (AIPLA) Quarterly Journal

The article reviews the economic framework behind the calculation of reasonable royalty damages and explain how to implement two key methods of computing these damages—referred to as the Market Share Method (“MSM”) and the Equilibrium Profit Method (“EPM”).

Article
Proposal to Remedy Horizontal Shareholding is Flawed
July 18, 2017
Published in Law360

This article evaluates a proposed remedy that would allow investors to hold shares in one company in a concentrated industry, or limit their shareholdings to no more than one percent of the industry.

Article
A 10% leverage ration does not justify waiving the Volcker rule
June 23, 2017
Published in Risk.net
Article
Securities Class Actions: Trading Models to Estimate Individual Investor Trading Activity and Aggregate Damages
May 2017
Published by The Brattle Group, Inc.
Article
The Do's And (Mostly) Don'ts Of Non-GAAP Measures
March 03, 2017
Published in Law360

In a Law360 article, Brattle Principal Adoria Lim and Associate Chi Cheng studied the correspondence between numerous companies and the SEC to identify and categorize the SEC’s hot buttons that may lead to enforcement actions, including litigation.

Article
The Bid-Ask Spread in the Danish Stock Market: Evidence from the 1990s
August 25, 2016
Published in the International Journal of Economics and Finance
The paper investigates the cost components of the bid-ask spread and the changes in the spread around earnings announcements on the small Danish stock market in the 1990s.
Article
Private Class Action Litigation Risk of Chinese Firms Listed in the U.S.
June 01, 2016
Torben Voetmann, Jan Jindra, and Ralph A. Walking
Published in the Quarterly Journal of Finance
Article
Latest SEC Report on Rating Agencies Resurrects Questions Concerning Conflicts of Interest
February 18, 2016
Pavitra Kumar
Published in Practice Points, a publication of the ABA’s Securities Litigation Committee
Article
Non-GAAP Measures: The SEC Awakens
December 22, 2015
Published in Practice Points, a publication of the ABA's Securities Litigation Committee
Article
Correct Application of Event Studies in Securities Litigation
December 17, 2015
Pavitra Kumar and Torben Voetmann
Published in Event Study Tools
Article
D.C. Circuit Clarifies that SEC Need Not Show Market Impact in Manipulation Cases
December 09, 2015
Published in the ABA's Securities Litigation Journal
Article
Coscia Verdict Highlights Different Approaches to High-Frequency Trading
November 12, 2015
Published in Practice Points, a publication of the ABA’s Securities Litigation Committee
Presentation
High-Frequency Trading in Litigation
March 26, 2015
Paul Hinton, Pavitra Kumar, and Lauren J. Schreur
Presented to The Knowledge Group
Article
Equity Market Microstructure and the Challenges of Regulating HFT
January 16, 2015
Published in Financier Worldwide
Article
High-Frequency Trading Litigation Presents Complex Issues for Experts
June 2014
Zachary Ziliak, Pavitra Kumar, and Torben Voetmann
Published by The Brattle Group, Inc. Published on Law360
Article
Computerized and High-Frequency Trading
May 2014
Published in The Financial Review, Vol. 49, No. 2
Report
Recent Guidance from the Delaware Court of Chancery - Summer 2013
August 2013
Published by The Brattle Group, Inc.
Article
What Makes Securities Class Actions with Accounting Allegations Different?
2011
Elaine Harwood, Adoria Lim, and Laura Simmons
Published by the American Bar Association
Report
Banking Entity Trading Under the Volcker Rule
2011
Published on Advisor Perspectives
News & Knowledge
June 22, 2018
Article by Brattle Economists Makes Sense of Initial Coin Offerings

Brattle Principal Ioannis Gkatzimas and Senior Associate Sujay Dave have written an article on initial coin offerings (ICOs) published in Securities Regulations Daily.

May 10, 2018
Brattle Academic Advisor Michael Goldstein to Present at SEC's Annual Conference on Financial Market Regulation

Brattle Academic Advisor Michael Goldstein will discuss “The Value of a Millisecond: Harnessing Information in Fast, Fragmented Markets" at the 5th Annual Conference on Financial Market Regulation.

January 31, 2018
Matthew Aharonian to Participate in The Knowledge Group Webinar on Securities Litigation

Brattle Senior Associate Matthew Aharonian will participate in The Knowledge Group’s webinar, “Securities Litigation: Defense Strategies in 2018 and Beyond,” taking place January 31, 2018 from 12:00 – 1:30 pm (EST).

January 19, 2018
The Brattle Group Introduces Its Newest Experts

The Brattle Group is pleased to introduce the seven exceptional experts who became Brattle principals over the past year.

December 08, 2017
Brattle Economists Author Law360 Article on Forex Market Fallout Following the Johnson Conviction

Brattle Principals Paul Hinton and George Oldfield have co-authored an article on Law360 discussing the use of criminal prosecution to police trading practices in institutional financial markets.

November 15, 2017
Matthew Aharonian to Present on The Knowledge's Group's Webinar on Securities Class Actions

Brattle Senior Associate Matthew Aharonian will participate on The Knowledge Group’s webinar, “Securities Class Actions: Trends & Developments in 2017 & Beyond,” taking place November 15, 2017 from 12-2 pm EST.

October 19, 2017
Torben Voetmann to Present at Practising Law Institute’s Program on Finance for Lawyers and Other Professionals

Brattle Principal Torben Voetmann will present at Practising Law Institute’s (PLI) program, “Pocket MBA 2017: Finance for Lawyers and Other Professionals,” taking place October 19-20, 2017 in San Francisco, CA and via webcast.

September 26, 2017
Brattle Experts Examine Target Date Funds in New Publication

In the first of a series of papers examining key economic, regulatory, and legal issues related to target date funds (TDFs), Brattle experts Chris Laursen, Ioannis Gkatzimas, and Branko Jovanovic provide an overview of TDFs, report on significant market trends, and summarize recent related litigation.

September 26, 2017
John Anthony to Participate in Global Credit Data Analytics Workshop

Brattle Associate John Anthony will participate in the upcoming Global Credit Data conference, taking place September 25-26th, 2017 in New York, NY.

September 25, 2017
Brattle Contributes to Shareholder Victory in Facebook Proposed Reclassification

On September 21, 2017 Facebook’s board of directors voted to abandon the pending reclassification of the company’s common stock.

August 17, 2017
Andrew Abere Interviewed in Law360 Article on Working With Antitrust Experts

Brattle Principal Andrew Abere was recently interviewed in the Law360 article, “Tips for Working With Economics Experts in Antitrust Cases,” outlining key pieces of advice on the most effective use of experts in antitrust litigation.

August 03, 2017
Brattle Economists and Academic Advisors Publish Article in AIPLA Quarterly on Using Conjoint Analysis to Calculate Reasonable Royalty Damages

Brattle economists Lisa Cameron and Jeremy Verlinda and Academic Advisors Greg Allenby and Peter Rossi have recently contributed the article “Calculating Reasonable Royalty Damages Using Conjoint Analysis” to the American Intellectual Property Law Association Quarterly Journal.

July 20, 2017
Valuation and Commercial Damages Expert Chris Polson Joins The Brattle Group

The Brattle Group is pleased to announce that Chris Polson, a valuation and commercial damages expert, has joined the firm’s Toronto office as a principal.

July 18, 2017
Brattle Economists Author Law360 Article on Proposed Remedies to Horizontal Shareholding

Brattle economists Elaine Buckberg, Steven Herscovici, James Reitzes, and Branko Jovanovic have authored a Law360 article addressing claims from recent studies that competition is adversely affected when “institutional investors hold significant shares in multiple firms within a ‘concentrated’ industry.”

July 12, 2017
New York Attorney General’s Chief Economist Guy Ben-Ishai Joins The Brattle Group

The Brattle Group is pleased to announce that competition and securities expert Dr. Guy Ben-Ishai has joined the firm’s New York office as a principal.

June 16, 2017
Paul Hinton and Armando Levy to Present at American Bar Association Western Regional CLE Program

Brattle Principals Paul Hinton and Armando Levy will present at the American Bar Association’s (ABA) 4th Annual Western Regional Continuing Legal Education (CLE) Program on Class Actions and Mass Torts, taking place June 16, 2018 in San Francisco, CA.

June 13, 2017
Brattle Consultants to Present on Case Studies in Securities Litigation at BASF CLE Event

Brattle Principals Torben Voetmann and Ioannis Gkatzimas, and Senior Associate Pavitra Kumar will present at the Bar Association of San Francisco (BASF) Securities Litigation Section’s Continuing Legal Education (CLE) event, “Case Studies in Securities Litigation: What Works After Halliburton,” taking place June 13, 2017 in San Francisco, CA and via webcast.

March 15, 2017
Sujay Dave to Present Elements of Securities Litigations on The Knowledge Group’s Webinar

Brattle Senior Associate Sujay Dave will present during The Knowledge Group’s webinar, “The Elements of Securities Litigation: Understanding the Basics,” taking place March 15, 2017 from 12-2 pm EST.

March 03, 2017
Non-GAAP Measures: Do's and (Mostly) Don'ts

In a new Law360 article, Brattle Principal Adoria Lim and Associate Chi Cheng studied the correspondence between numerous companies and the SEC to identify and categorize the SEC’s hot buttons that may lead to enforcement actions, including litigation.

February 08, 2017
Torben Voetmann to Discuss Halliburton II and Fraud-on-the-Market Theory at The Knowledge Group’s Webinar

Brattle Principal Torben Voetmann will present during The Knowledge Group’s webinar, “Halliburton II and Fraud-on-the-Market Theory: New Legal Challenges and Strategies Impacting Class Certification,” taking place February 8, 2017 from 12:00-2:00pm EST.

January 31, 2017
Finance Expert Laurence Freed Joins The Brattle Group’s New York Office

The Brattle Group announced today that finance expert Laurence Freed has joined the firm’s New York office as a senior consultant.

October 03, 2016
Finance Expert Elaine Buckberg Joins The Brattle Group From U.S. Treasury Department

The Brattle Group announced today that finance expert Dr. Elaine Buckberg has joined the firm’s Washington, DC office as a principal.

September 06, 2016
Matthew Aharonian to Discuss Halliburton II and the Price Impact Rule at The Knowledge Group’s Webinar

Brattle Senior Associate Matthew Aharonian will present during The Knowledge Group’s webinar, “Halliburton II and the Price Impact Rule: Impact on Securities Class Actions,” taking place September 6, 2016 from 12:00-2:00 pm EST.

August 30, 2016
Paper by Torben Voetmann Investigates Bid-Ask Spread in Danish Stock Market

Brattle Principal Torben Voetmann recently authored a paper investigating the cost components of the bid-ask spread and the changes in the spread around earnings announcements on the small Danish stock market in the 1990s.

July 07, 2016
Chris Laursen Contributes to Defendants’ Win in TMST Mortgage Case

In the recently decided case SEC v. Goldstone et al, Brattle Principal Chris Laursen submitted an expert report and testified in the jury trial held in the U.S. District Court for the District of New Mexico.

June 01, 2016
Torben Voetmann Authors Paper on Private Class Action Litigation Risk of Chinese Firms Listed in the U.S.

Brattle Principal Torben Voetmann has co-authored a paper published in the Quarterly Journal of Finance that analyzes the litigation risk of Chinese firms listed in the U.S.

May 27, 2016
Adoria Lim to Present and Torben Voetmann to Moderate at ABA’s Western Regional CLE Program on Class Actions and Mass Torts

Brattle's Adoria Lim will present and Torben Voetmann will moderate at the American Bar Association’s (ABA) 3rd Annual Western Regional CLE Program on Class Actions and Mass Torts, which will take place at the Bar Association of San Francisco on May 27, 2016, at 2:00 pm – 3:00 pm PST.

April 20, 2016
Matthew Aharonian to Present Webinar on Halliburton II and the Price Impact Rule Decision

Brattle Senior Associate Matthew Aharonian will participate in The Knowledge Group’s webinar, “Halliburton II and the Price Impact Rule Decision: Then & Now,” taking place April 20, 2016 from 12:00 pm - 2:00 pm EST.

April 14, 2016
Torben Voetmann to Present on Class Actions at ABA Section of Litigation Annual Conference

Brattle Principal Torben Voetmann will present at the American Bar Association’s (ABA) 2016 Section of Litigation Annual Conference, taking place April 13-15, 2016 in Chicago, IL.

February 18, 2016
Pavitra Kumar Comments on SEC Report on Rating Agencies in ABA’s Practice Points

Brattle Senior Associate Pavitra Kumar recently contributed to Practice Points, a publication of the ABA’s Securities Litigation Committee, on the Securities and Exchange Commission’s (SEC) 2015 summary report of the Nationally Recognized Statistical Rating Organization (NRSRO).

December 23, 2015
Brattle Economists Author Law360 Article Examining Methodology Findings in Halliburton Class Decision

Brattle Principals Torben Voetmann and Paul Hinton and Senior Associate Matthew Aharonian recently co-authored an article published on Law360, “Battle of the Experts: The Focus on Event Studies in Class Certification.”

December 22, 2015
Adoria Lim Comments on Non-GAAP Measures in ABA's Practice Points Publication

Brattle Principal Adoria Lim contributed to Practice Points, a publication of the ABA’s Securities Litigation Committee, on the use of non-GAAP measures.

December 09, 2015
Brattle Economists Author Article on Proof of Intent in the SEC

Brattle principals Shaun Ledgerwood and Paul Hinton recently authored the article “D.C. Circuit Clarifies that SEC Need Not Show Market Impact in Manipulation Cases” for the American Bar Association’s Securities Litigation Committee.

November 12, 2015
Brattle Economists Comment on Coscia Verdict and Different Approaches to Enforcement in High-Frequency Trading Markets

Brattle principals Paul Hinton and Shaun Ledgerwood have contributed to Practice Points, a publication of the ABA’s Securities Litigation Committee, on the topic of the recent Coscia verdict and enforcement trends in high-frequency trading markets.

November 10, 2015
Pavitra Kumar and Torben Voetmann Author Article on Event Studies in Securities Litigation

Brattle senior associate Pavitra Kumar and Brattle principal Torben Voetmann recently published an article in Event Study Tools, which illustrates the use of traditional and intraday event studies in securities litigation.

March 26, 2015
Paul Hinton and Pavitra Kumar Present at High-Frequency Trading Litigation Webinar

Brattle principal Paul Hinton and senior associate Pavitra Kumar recently presented in the webinar, “High-Frequency Trading Litigation in 2015,” hosted by The Knowledge Group on March 26, 2015 from 3:00 pm – 5:00 pm EST.

March 09, 2015
Judy Chang to Present at Independent Power Producers Society of Alberta Conference

Brattle principal Judy Chang has been selected to serve as a panelist at the upcoming Independent Power Producers Society of Alberta (IPPSA) 21st Annual Conference, “The Art of the Deal,” taking place March 8-10, 2015 in Banff, Alberta.

January 01, 2015
Article Co-Authored by Paul Hinton and Michael Cragg on Equity Market Microstructure and High Frequency Trading Published in Financier Worldwide

Brattle principals Paul Hinton and Michael Cragg recently co-authored an article for the January 2015 issue of Financier Worldwide that discusses how the technological evolution of the U.S. equity market’s microstructure and competitive forces may have combined to produce this paradox, the implications for market performance, and the dilemma this poses for regulators.

December 16, 2014
Ryan Hledik to Present at EUCI Program on Residential Demand Charges

Brattle senior associate Ryan Hledik will present at an upcoming EUCI webinar on residential demand charges, taking place on December 16, 2014 at 1:00 PM EST.

December 04, 2014
Brattle Academic Advisor Josh Lerner Collaborates with State Street Global Exchange to Enhance Private Equity Research

State Street Global Exchange recently announced a new collaboration with the Private Capital Research Institute (PCRI), a non-profit organization founded by Brattle academic advisor Josh Lerner, the Jacob H. Schiff Professor of Investment Banking at Harvard Business School.

December 02, 2014
Brattle Experts Involved in Closely Watched AIG Case

Last week the record for Starr International Co. Inc. et al. v. U.S. closed after 37 days of trial. This epic case involves the shareholders of American International Group Inc. (AIG) claiming compensation of nearly $50 billion for the U.S. Government’s taking and/or illegally exacting 79.9 percent of shareholders’ equity at the peak of the financial crisis the day after Lehman failed. The team supported the testimony of Brattle principal Michael Cragg who testified over the course of five days.

July 24, 2014
Securities and Commercial Litigation Expert Ioannis Gkatzimas Joins The Brattle Group

Securities and commercial litigation expert Ioannis Gkatzimas has joined the firm’s San Francisco office as a principal. Mr. Gkatzimas has significant experience in a wide range of finance and securities litigation matters.

July 10, 2014
Michael Goldstein Quoted in Wall Street Journal Article on High-Frequency Trading

Brattle academic advisor Michael Goldstein, a Professor of Finance and Chair of the Finance Division at Babson College, was quoted in a recent Wall Street Journal article, “The Markets Unplugged."

June 27, 2014
Brattle Economists Co-Author Article Highlighting Complex Issues for Experts in High-Frequency Trading Litigation

Principal Torben Voetmann and senior associate Pavitra Kumar, along with Zachary Ziliak of Ziliak Law, have authored an article that discusses the complexities and challenges for experts arising from increased litigation surrounding high-frequency trading.