Securities & Finance
Securities Class Actions & ERISA Litigation

The Brattle Group provides expert testimony and consulting support in all phases of securities class actions, including Rule 10b-5, Section 11 and 12, and ERISA matters, from pre-litigation to distribution of settlements. Our Principals and affiliated experts have extensive experience with analyses of loss causation, market efficiency, and trading behavior, supporting successful arguments related to class certification and damages, including trial and summary judgments in the United States, Australia, Canada, and Europe.

At the class certification phase, we assist our clients in determining if securities were traded in an efficient market, whether there is evidence of price impact, and the extent of conflicts among class members. Using proven arguments and innovative approaches to evaluate per-share damages scenarios and alternative trading models to determine investors’ trading activity, we assist our clients with the assessment of potential aggregate damages and model potential settlement scenarios, relying on rigorous academic research on the principles of security price formation. We also address issues related to financial econometrics and apply data analytics skills to complex individual-level transaction datasets.

Brattle experts perform a range of analyses critical to securities class actions, including:

  • Evaluating class certification arguments about market efficiency;
  • Examining alleged misstatements and omissions to establish loss causation and corrective disclosures;
  • Performing event studies to measure potential inflation and price impact;
  • Estimating potential damages in securities class actions using trading models; and
  • Examining trading behavior by individual and institutional investors.

We serve clients in a variety of industries, including energy, financial institutions, construction and manufacturing, healthcare and pharmaceuticals, and technology.

ERISA Litigation
Employee Retirement Income Security Act (ERISA) litigation commonly arises when employee benefit plans suffer market-induced losses. Brattle delivers expert testimony and consulting support, including working papers and research reports, in a variety of ERISA and pension plan litigation matters, including the two major types of plans: defined benefit plans and defined contribution plans (for example, 401(k)s and IRA accounts). Brattle’s clients in this sector range from plan fiduciaries, administrators, and trustees, to external investment consultants for defined benefit plans, company benefits committees, and the Pension Benefits Guaranty Corporation.

Our team of internal and external experts performs a range of analyses including:

  • Evaluating reasonableness of company stock holdings in 401(k) plans;
  • Examining the overall soundness of defined benefit plan trustees’ investment strategies;
  • Assessing compliance of plan fiduciaries, administrators and auditors with industry standards and customs;
  • Researching the appropriate discount rate to apply to unfunded pension liabilities;
  • Evaluating allegations of sham transactions to avoid pension liability;
  • Analyzing “pension puts”;
  • Estimating damages in ERISA class action suits arising from alleged over-concentration in employer stock and general mis-allocation of funds; and
  • Examining alleged age discrimination in cash balance pension plans.

Article
Securities Class Actions: Trading Models to Estimate Individual Investor Trading Activity and Aggregate Damages
May 2017
Published by The Brattle Group, Inc.
Article
December 22, 2015
Published in Law360
Article
Correct Application of Event Studies in Securities Litigation
December 17, 2015
Pavitra Kumar and Torben Voetmann
Published in Event Study Tools
Article
What Makes Securities Class Actions with Accounting Allegations Different?
2011
Elaine Harwood , Adoria Lim, and Laura Simmons
Published by the American Bar Association