In recent years, the Securities and Exchange Commission has focused on using quantitative analysis to identify statistical outliers and anomalies through programs like the Aberrational Performance Inquiry, which evaluates hedge fund returns,and the Accounting Quality Model, which scours public company filings to estimate “peer-level risk metrics.” Using enforcement actions involving the allocation of securities as an example, Tiago Duarte- Silva and Nicolas Morgan explore issues raised by the use of statistics in SEC enforcement actions and inquiries.
To read the post on the CLS Blue Sky Blog, click here.
Factors affecting variations in securities class action claims rates
Claims rates are of interest to parties to the settlement process. Average claims rates, which are well below 100%, suggest either that plaintiffs’ class-wide...