Financial Markets Analysis, LLC
Representative Engagements

The work of FMA staff members has been instrumental in the resolution of some of the largest securities litigations filed, including:  AOL Time Warner, WorldCom, Inc., Enron, Inc., and Tyco International, Ltd, and FMA has provided testimony at trial in four of the handful of securities fraud cases to go to trial since 1995.

Representative Engagements

•  Served as expert in an options backdating securities fraud class action case involving Juniper Networks, including providing the class certification expert and rebuttal declarations which the Court cited positively in granting class certification.  Consulting services and testimony were instrumental in helping to reach a $169 million settlement in favor of the plaintiffs. 

•  Provided consulting services and served as plaintiff’s expert in securities fraud class action involving Flowserve Corporation, providing testimony on market efficiency and loss causation.  Loss causation argument reviewed and upheld by 5th Circuit Appellate Court.  Developed plan of allocation of the $55 million settlement.

•  Engaged on behalf of consumers alleging deceptive marketing practices for a yogurt product that promised digestive health benefits. Provided testimony regarding the potential economic damages sustained as a result of price premiums assessed relative to generic yogurt.

•  Provided consulting services and expert testimony in a mutual fund shareholder fraud class action involving an ultra-short mutual fund pursuant to Federal and California State claims.  Prepared forensic analysis of benchmark performance deviation and provided consulting related to the $200 million settlement and class plan of allocation.

•  Provided consulting services for counsel in the Enron securities class action that has provided more than $7.2 billion in recovery for injured investors.  FMA’s analysis of experts’ reports for both plaintiffs and defendants facilitated comprehension of the underlying economic arguments presented therein.

•  Worked on behalf of major state pension fund, who opted out of the global class-action settlement, in preparing an analysis of the damages sustained as a result of their investments in WorldCom securities.  Settlement in the amount of $78.9 million was achieved, representing approximately 60 percent of our damages.

•  Engaged by the SEC to estimate aggregate damages and design plans of allocation for settlements achieved in insider trading disgorgement and securities fraud cases.

•  Testified at trial on behalf of plaintiffs regarding the misstatements and omissions in the proxy materials filed by the general partner of Real Estate Associates, Ltd. in its efforts to purchase the limited partnership interests.  Resulted in verdict in favor of the plaintiffs and 100 percent of the claimed damages were awarded.

•  Provided testimony regarding aggregate damages in the Household International, Inc. matter based on the jury verdict in favor of plaintiffs.

•  Advised legal team representing minority investors in a private investment company controlled by the CEO of a public parent.  Prepared executive compensation analysis to be used in conjunction with the overall valuation of the firm’s shares.  Legal team achieved settlement whereby private, illiquid shares were valued on public market value basis, without discount, and permitted to be sold.

•  Quantified the economic importance of a particular drug in the pipeline of a pharmaceutical company during the two year period leading up to the FDA panel’s recommendation that the drug not be approved for marketing. Provided analysis of artificial inflation per share in the stock price used in obtaining settlement recovery for shareholders in the amount of $55 million.

•  Prepared an analysis of the trading information for various individual plaintiffs in the AOL Time Warner opt-out cases and provided expert testimony as to materiality, loss-causation and damages. The cases ultimately settled at a substantial premium to the proposed recovery had plaintiffs not opted out of the class action.

•  Provided calculation of damages and analysis of loss causation in the UnitedHealth backdating case, which ultimately settled for $895 million.

•  Provided anti-trust consultation services relating to various valuation issues in the Payment Card Interchange Fee and Merchant Discount Antitrust Litigation.  On July 13, 2012, the parties announced a proposed settlement valued at up to $7.25 billion.