Securities Expert Witness

Securities expert witness provide expert consulting by combining years of practical investment management experience with a strong academic background to bring a unique perspective to securities investment cases. Typically, experts are relied on by both sides to a dispute for opinions on severity of earnings, misconduct, due diligence missteps, and the like. Witnesses can consult in litigation involving derivative securities and structured products such as caps, floors, collars, pre-paid forwards and a host of exotic options. Securities expert witnesses can provide opinions on the suitability and economic merit of the investment related activities within a variety of tax-shelter related cases.

Securities expert witness use has risen due to the fact that in recent years, securities trading has become more complex. Between Reg SHO, the SEC Order Handling Rules, Manning, Reg NMS, Reg M, and other regulatory and trading issues that have arisen, securities attorneys often seek the advice of trading experts. In England and Wales, under the Civil Procedure Rules 1998, an expert witness is required to be independent and address his or her report to the Court. A securities expert witness may be jointly instructed by both sides if the parties agree to this. Under the CPR, expert witnesses may also be instructed to produce a joint statement detailing points of agreement and disagreement to assist the court or tribunal.

Securities expert witness are experienced in virtually all facets of disputes in the securities, investment and trading industry. Panel selection, damage calculation, written opinions, expert testimony, experience in international arbitration / Tribunal hearings can also be important. The tribunal itself, or the judge, can in some systems call upon experts to technically evaluate a certain fact or action, in order to provide the court with a complete knowledge on the fact/action it is judging. The expertise has the legal value of an acquisition of data. The results of these experts are then compared to those by the experts of the parties.

Experts can be used to give objective opinions with solid economic and statistical testimony to support conclusions. Experts are expected to conduct independent legal analysis and not rely on existing research. Extensive industry experience within the area of testimony is requisite. Potential areas for testimony can include market manipulation, stock mispricing, currency options mispricing, acquisition disputes, and insider trading allegations. Within all of these, experts must use raw data to give clear and concise reports. If the witness needs to testify in court, the privilege is no longer protected. The expert witness's identity and nearly all documents used to prepare the testimony will become discoverable. Usually an experienced lawyer will advise the expert not to take notes on documents because all of the notes will be available to the other party.