Claims Against a Home Builder

In a Rule 10b-5 class action brought against our client, a large home builder, Cornerstone Research examined the plaintiffs’ claims of misrepresentation, omissions, and damages.

In a Rule 10b-5 class action brought against our client, a large home builder, Cornerstone Research examined the plaintiffs’ claims of misrepresentation, omissions, and damages. We employed statistical procedures to analyze the plaintiffs’ assessment of the impact of the allegedly corrective disclosures. Our analysis demonstrated that the plaintiffs had substantially overstated alleged damages. Our work also included an in-depth analysis of write-downs of impaired inventory and option contract abandonments in the home building industry, the results of which revealed that our client performed comparably to peers. We worked with our client through mediation and settlement.