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Economic analysis of insider trading and other fraudulent schemes typically involves evaluating patterns of economic activity for signs of alleged misconduct. Brattle experts use statistical analysis of trading patterns and forensic analysis to examine allegations, trace proceeds, and test alternative hypotheses for the observed activity.

Engagements
REPRESENTATIVE ENGAGEMENTS

Below is a list of representative engagements for our Insider Trading & Fraudulent Schemes practice.

U.S. v. Naseem insider trading
A Brattle principal worked with the testifying expert in a high-profile case involving a former Credit Suisse banker accused of insider trading and conspiracy to commit securities fraud. The testimony dealt with complex issues regarding the (lack of) materiality, and the importance of accurately accounting for the information mix available to investors in capital markets from all potential sources at a particular point in time. We analyzed case-specific facts, the information mix in the market, the timing and relevance of detailed accounting information and stock price data to explain how the nature and quality of publicly-available information influenced both investment decisions and the traded value of the securities.
Fraudulent scheme
Brattle experts conducted an analysis of “bluesheet” equity trading data to identify trades allegedly arranged to allow the defendant to sell a large position in a controlled entity via a nominee without affecting the market price. Alleged manipulative trading designed to raise the market price in advance of the sales was also evaluated.
Insider trading SEC v. Ruggeri administrative action
A Brattle expert conducted a statistical analysis of trading patterns to assess whether particular trades were correlated with instances in which the defendant had access to inside information in the form of advance copies of analyst reports. The types of reports that were expected to have an effect on share price were evaluated with reference to the economic literature on stock price response to different types of disclosures in analyst reports.
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