Financial Litigation

Financial markets and firms are being increasingly scrutinized amid global crises, strict regulation, legal challenges, and volatile stock markets. Nathan Associates’ experts analyze a wide range of financial disputes that arise from this scrutiny. Our expertise includes financial economics, statistics and econometrics, accounting, and valuation. We team with academic affiliates from top universities to provide consulting and expert testimony in securities litigation; pension, mutual fund and hedge fund disputes; and business asset valuation. Specialized expertise includes the following:

  • Evaluating fraud-on-the-market allegations under Rule 10b-5 of the Securities Exchange Act of 1934
  • Analyzing allegations of market misconduct, such as insider trading and other types of market manipulation
  • Studying pension fund investment returns for Employment Retirement Income Security Act (ERISA) claims
  • Examining risk taking, market timing, and investment suitability of pension funds, mutual funds, and hedge funds
  • Assessing the merit of excessive fee claims by examining fund trading behavior and investment styles
  • Investigating backdating of employee stock options
  • Analyzing class certification issues (numerosity and commonality)
  • Managing valuation issues, bankruptcy, and fraudulent conveyance litigation
  • Determining the adequacy of risk assessments and due diligence
  • Evaluating equity lending and short-selling claims
  • Investigating Ponzi schemes and other accounting fraud, and related investor damage claims
  • Analyzing damage claims arising from real estate and mortgage-backed securities.

Nathan Associates’ financial experts have direct experience with the institutions and organizations that manage and regulate the U.S. financial system and enforce financial laws and regulations, including the Securities and Exchange Commission, NASDAQ, the FDIC, the Department of Justice, Financial Industry Regulatory Authority (FINRA), the Pension Benefit Guarantee Corporation, and federal and state bankruptcy courts.

Securities Class aCTION Litigation and Dispute resolution

Nathan Associates helps clients navigate the economic and financial complexities of securities class action litigation and individual disputes. We advise litigators in securities fraud cases brought under Sections 11, 12, and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Our experts and analysts also conduct financial and economic analysis and provide written and oral testimony on complex securities class actions and opt-out matters. They have provided testimony for and assisted attorneys in several landmark class action securities cases. These include Maine State Retirement System et al., v. Countrywide Financial Corp. et al (USDC Central California), a mortgage-backed securities class action; Teamsters Local 445 Freight Division Pension Fund v. Dynex Capital, Inc (USDC Southern New York), a Rule 10b-5 “fraud-on-the-market” asset-backed securities class action; and New Jersey Carpenters Vacation Fund, et al. v. The Royal Bank of Scotland Group, et al (HarborView MBS Securities Litigation; USDC Southern New York). 

EXPERTISE

Our expertise in securities class actions involving equities and fixed-income securities includes the following:

  • Preliminary evaluation of individual and/or aggregate damages
  • Evaluation and expert testimony on case merits involving equities and fixed-income securities
  • Class certification expert testimony, including analysis of market efficiency
  • Evaluation and expert testimony on materiality, including statistical analysis
  • Loss causation expert testimony, including event study analysis
  • Asset and entity valuation expert testimony in shareholder derivative litigation
  • Plans of allocation.

Valuation

In various types of financial litigation, we assist clients with the valuation of whole businesses and complex assets and financial instruments, including

  • Options
  • Asset-backed securities
  • Credit default swaps
  • Inverse floaters
  • Distressed assets.

Pension Fund, Mutual Fund, and Hedge Fund Disputes

Intensified scrutiny of pension funds, mutual funds, and hedge funds has been triggered by their enormous growth and allegations of fraudulent activities such as insider trading, investors being misled on trading strategies, and other conflicts of interest between investors and funds, fund families, and brokers. Nathan Associates’ securities experts study a variety of issues:

  • Performance evaluation and risk assessment
  • Potential conflicts of interest arising from the simultaneous management of mutual funds and hedge funds
  • Effects of hidden fund activities
  • Advisory fees in open-end mutual funds
  • Multiple share classes of mutual funds
  • Cross-subsidization in a fund family
  • Misuse of confidential trading strategies
  • Appropriateness of fund disclosure
  • Assessment of the uniqueness of a fund strategy.

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