Securities fraud under Rule 10(b)-5

When shareholders of one of the world’s largest insurance companies brought a multi-billion-dollar class action lawsuit against the company’s senior management, one of the defendants hired a CRA expert. The plaintiffs claimed that the defendants had breached their fiduciary duties in various ways and caused the company’s shares to lose value.

CRA’s expert performed an event study and regression analysis which demonstrated that the plaintiff’s damages methodology was unreliable. The expert also demonstrated that the damages, if calculated properly, would be much smaller. Ultimately, the client entered into a favorable settlement.