In EFFECTIVE VALUATION & LITIGATION SUPPORT IN CORPORATE SECURITIES LAWSUITS, forensic accounting expert witness Richard M. Squar, CPA, CVA, ABV, CFF, MBA-Taxation, writes:
CORPORATE SECURITIES LITIGATION
• Minority shareholder rights • Going public or going private transactions • Securities fraud • Buy-sell agreements • Corporate dissolution
Damages are included regarding fraudulent security transactions. Damages here are often measured as the difference between the intrinsic value of the securities involved and the actual price at which shares were exchanged.
This article touches the surface on some key concepts in valuation and litigation support services applicable to corporate securities lawsuits. Directors’ decision-making abilities are expanded knowing the benefits of including and relying upon an effective valuation expert early in corporate securities cases.
The appraisal valuation date is normally the date the transaction regarding alleged effects upon the dissenting shareholder(s) occurred. The valuation may be expanded to include the date of trial and possibly, in fraud cases, the date the fraud was publicly discovered.
The appropriate standard of value to apply is where the expert often begins.