Economic Damage Analysis

Venstrat offers a range of consulting services pertaining to economic damage analysis, with a particular focus on securities litigation support. Areas of concentration include damage assessment, causation analysis, market efficiency analysis, and expert witness testimony. Members of our team have over 25 years of experience in financial and economic analysis in the context of litigation.

In assessing economic damages in securities litigation cases, a central objective is to incorporate all available and pertinent information, thereby minimizing reliance on hypothetical assumptions. Our proprietary damage calculation methodologies are centered around the use of actual shareholder data, allowing for unparalleled precision. Our ability to isolate security-specific factors from market dynamics further ensures that our damage opinions stand up to scrutiny.

Venstrat brings a unique combination of real-world, Wall Street experience and academic scholarship to securities litigation consulting engagements. Our event studies benefit from a deep understanding of how securities prices respond to various types of events and disclosures, and from a familiarity with criteria used by securities analysts and institutional investors in arriving at investment decisions. Our market efficiency analyses incorporate both practical market expertise and economic and financial theory.

Securities litigation consulting services include:

  • Economic Damage Assessment: Venstrat performs thorough evaluation of aggregate class damages, including selling damages, based on in-depth analysis of shareholder data and trading activity. We also offer initial (pre-discovery) damage estimation studies to assist attorneys in: 1.) ascertaining the feasibility of litigation and/or class certification; 2.) identifying specific institutional plaintiffs with substantial damage claims.
  • Event Studies: We provide detailed analyses of relationships between events/disclosures and securities price movements in order to arrive at defensible conclusions regarding causation. We also offer initial causation assessments for use in evaluating the merits of a case.
  • Market Efficiency Studies: Venstrat conducts in-depth studies of the timeliness with which a specific security’s pricing reflects market-related factors.
  • Expert Witness Testimony: We offer testimonial services related to causation, economic damages, market efficiency, and other areas involving financial and economic analysis in the context of securities fraud litigation.