Negative causation using an intraday event study
Brattle was engaged by a company in the healthcare sector to develop negative causation arguments and examine corrective disclosure dates using an intra-day event study method. The analysis involved a close assessment of price impact following Halliburton II. We examined the intra-day price impact following corrective disclosure dates, accounting for intra-day price movements of the market, and competitors. Brattle further disentangled the price impact by developing an earnings response model to examine the relationship between earnings announcements and changes in analyst consensus estimates. For the mediation negotiation, our team developed a settlement prediction model, alternative measures of inflation per share, and arguments in support of negative causation and intra-day price impact. Based on Brattle’s analytic framework to measure price impact, our client reached a successful settlement early in the litigation.