Securities & Financial Markets

Compass Lexecon pioneered the application of modern finance theory to securities fraud, insider trading, market manipulation, and other forms of securities litigation. We are a leader in the use of statistical methods in securities litigation and the study of financial markets.

Our firm’s economists and experts provide consulting assistance and testify regularly in securities cases on issues relating to market efficiency, causation, materiality, class certification, and damages. We provide consulting assistance and testimony in tax litigation on issues relating to economic effects, economic substance, risk management, transfer pricing, and valuation. Our economists have authored articles on the use of financial economics in securities litigation that have been cited favorably by numerous courts, including the U.S. Supreme Court. We have been retained in matters in the U.S. and Canada as well as in Europe, Asia, South America, Australia, and New Zealand.

Compass Lexecon has been involved in evaluating many of the most prominent issues facing corporations in recent years including:

  • Interest Rate Manipulation
  • Mortgage-Backed Securities Violations
  • High Frequency Trading
  • Mutual Fund Market Timing
  • Options Backdating
  • IPO Allocations
  • Contested Mergers
  • Class Action Litigation Brought Under Securities Laws
  • Class Action Litigation Brought Under ERISA