Proper Event Study Analysis in Securities Litigation
Torchio, Frank, Journal of Corporation Law
I. INTRODUCTION
For over two decades, event studies have been prominently used as a valuation technique in various litigation matters including securities litigation. An event study is an empirical technique that measures the effect of new information on the market prices of a company's publicly traded securities. In securities litigation, event study methodology has been widely used in fraud-on-the-market cases as economic evidence of materiality, loss causation, and artificial inflation.
The focus of event studies in securities class actions has been predominantly on disclosures that correct prior misrepresentations. It has become commonplace in securities class actions, …
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Publication information:
Article title: Proper Event Study Analysis in Securities Litigation.
Contributors: Torchio, Frank - Author.
Journal title: Journal of Corporation Law.
Volume: 35.
Issue: 1
Publication date: Fall 2009.
Page number: 159+.
© University of Iowa, Journal of Corporation Law Oct 2008.
Provided by ProQuest LLC. All Rights Reserved.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.
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