Security measures – Calculating damages in securities fraud cases

Description

Abstract: When it comes to calculating damages, few types of litigation are more challenging than securities fraud. On any given day, a security’s price may be influenced by many factors, from the economy as a whole to industry trends to company-specific events. A damages expert must consider the legitimate market factors and isolate the impact of fraud or other wrongdoing. This article discusses the laws that govern securities fraud matters and looks at the expert’s role in determining the value of a security but for the misstatement or omission of a material fact, providing a brief example to illustrate the process. (Updated 8/29/12)