As with most litigation, the assessment of loss in the
context of a shareholder class action largely depends on how
lawyers, on behalf of claimants, frame damages.
As with most litigation, the assessment of loss in the context
of a shareholder class action largely depends on how lawyers, on
behalf of claimants, frame damages. In our experience, there are a
number of methodologies that are often considered when quantifying
losses in these types of proceedings:
- 'No Transaction' case – which plead that, but for
the alleged conduct, shareholders would not have entered into any
transaction.
- 'Inflation' case – but for the alleged conduct,
shareholders would still have traded, but at an alternative
hypothetical price.
