Event studies have long been used to establish or challenge loss causation in securities class actions and other financial disputes. Though most commonly used to study publicly traded stocks, the event study methodology has more recently been applied to crypto assets by academic researchers and – given the rise in crypto-related enforcement actions and criminal prosecutions – will likely become more common in cases of crypto litigation.

In a recent Law360 article, Principal Sujay Davé and Senior Associates Nguyet Nguyen and Yingzhen Li discuss how experts should approach using the event study methodology in crypto litigation, given the unique features of crypto markets and individual assets. The coauthors highlight five considerations experts and counsel should be aware of, including those related to market efficiency, models of expected return, the first disclosure, the event window, and pricing data given simultaneous trading across exchanges.

The full article, “How Event Studies Can Be Applied to Crypto Markets,” is available below.

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