Opt-out decisions by institutional investors
Brattle worked closely with a number of institutional investors in a securities class action. The securities at issue included common stock, dually listed in the US and Canada, and more than 10 fixed-income instruments. As part of the mediation negotiations, Brattle worked with counsel to estimate aggregate damages for each of those institutional investors based on their trading history and the terms outlined in the proposed settlement. Brattle conducted event studies to parse out non-company-specific effects on stock prices. In calculating damages based on trading history, Brattle considered different scenarios with regards to LIFO/FIFO and whether pre-class holding could be used to offset trading during the alleged class period. For fixed-income instruments, we analyzed Trade Reporting and Compliance Engine (TRACE) data, taking into account the difference between dealer-to-dealer trades and dealer-to-end-client trades. Brattle also analyzed the potential claims of those institutional investors to facilitate their opt-out decisions.