Securities Litigation & Risk Management
With increased volatility in financial markets, as well as a global regulatory environment that changes rapidly and inconsistently in various global regions, FTI Consulting clients require experts who can assess, quantify and manage the complex range of risks inherent in global financial markets.
Professionals from the Compass Lexecon subsidiary of FTI Consulting pioneered the application of the modern theory of finance to issues relating to securities fraud, insider trading, market manipulation and other forms of securities litigation. Our securities litigation and risk management consulting experts testify for our government and corporate clients in the most complex disputes involving these issues. We also develop, review and implement financial risk management programs and transactions and create and implement strategies for managing market and credit risks, liquidity and operational risks, reputational risk, litigation exposures and regulatory compliance. Additional information on our capabilities in this area can be found at Compass Lexecon.
The Economic Consulting practice is renowned for using the most advanced statistical methods in risk management and securities litigation.
Our experts have testified on securities issues in the United States and globally, including Canada, the United Kingdom, continental Europe and Asia. Our areas of specialization include:
- Consulting and testifying in securities cases involving issues such as market efficiency, causation, materiality, class certification and damages
- Providing assistance and testimony in tax litigation cases relating to economic effects, economic substance, risk management, transfer pricing and valuation
- Testifying in areas such as ERISA disputes, mutual fund market timing, options backdating, IPO allocations, contested mergers and class action litigation brought under the securities laws
- Reviewing financial structures and products such as derivatives, securitizations and securitized products, collateralized debt obligations, credit derivatives, special purpose vehicles, finite risk, and financial reinsurance and elevated-risk complex structured finance activities
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.