Finance and Securities

The experts, affiliates, and staff at Coherent Economics are experienced in an array of finance and securities topics.  Our team has consulted or provided opinions in finance matters both for plaintiffs and defendants.  In addition, our experts have testified at trial on behalf of the U.S. Department of Justice in matters relating to changes in capital adequacy requirements at thrift institutions.

Our team has also consulted on, or provided testimony in, matters involving Section 10 and Rule 10b-5 claims, ERISA litigation concerning allegations of imprudent investments and fees, and actions involving the U.S. Securities and Exchange Commission and Financial Industry Regulatory Authority.  Coherent Economics has also recently consulted on issues arising in high profile corporate bankruptcies and disputed corporate transactions, and has performed empirical analyses to evaluate transaction process and valuation.

Our team has experience analyzing and valuing asset-back securities and other structured finance products that stretches back to the 1980's.  Among other issues, we have analyzed interest rate risk, credit risk, fraud, and principle-agent issues.  Coherent Economics has recently been engaged in matters relating to losses incurred on mortgage-backed securities during the financial crisis.

Areas of Expertise

We have experience in the following areas:

  • Securities fraud
  • ERISA litigation
  • Structured finance
  • Valuation
  • Bankruptcy and solvency analysis
  • Regulation of financial institutions
  • Loss causation in financial crises
  • Class certification

Select Prior Engagements

  • Coherent Economics was retained by Wachtell, Lipton, Rosen & Katz to assist California Institute of Technology Professor Bradford Cornell in a shareholder appraisal action on behalf of CEC Entertainment, Inc., the parent company of Chuck E. Cheese.  Laurel Van Allen led a team analyzing the fair value of shares in CEC Entertainment as of the date it was acquired by a private equity firm.  The case settled on undisclosed terms.
  • Coherent Economics was retained to serve as a consultant to the Official Committee of Unsecured Creditors in the GMAC ResCap bankruptcy proceedings.  Drs. Alan Frankel and Roy Epstein worked with Professor Bradford Cornell to develop an innovative methodology for providing an independent evaluation of the reasonableness of an agreed claim of $8.7 billion relating to losses incurred on securitized mortgage loans.
  • Dr. Frankel was retained on behalf of Mayer, Brown, Rowe, & Maw in a securities fraud class action brought against parties related to the bankrupt CFS Corporation.  Dr. Frankel analyzed and opined on the solvency of CFS, the value of CFS-originated securitizations backed by credit card receivables, and damages claims brought by investors.
  • Dr. Frankel testified at trial on behalf of the U.S. Department of Justice in a breach of contract suit.  He rebutted claims brought against the United States as a derivative action by former shareholders of Benjamin Franklin Savings and Loan Association stemming from changes in the regulatory capital requirements that applied to thrift institutions, including a damages claim of approximately $2 billion.