Defense counsel retained Cornerstone Research and Dr. John Gould, a senior vice president of Cornerstone Research, to provide consulting analysis and expert testimony in this 10b-5 securities matter.
Retained by Wilmer Cutler Pickering Hale and Dorr
United States District Court Judge Joseph L. Tauro declined to certify a class in the Organogenesis 10b-5 securities matter, finding that neither of the two named plaintiffs could represent the class: one because he did not have standing to assert claims against all of the defendants, and the other because his trades, when properly analyzed, did not result in a loss. The latter’s trading appeared to have resulted in a loss when the first-in, first-out (FIFO) accounting method proposed by plaintiffs was used to evaluate his trading records. However, as demonstrated by Cornerstone Research’s analysis, the plaintiff actually realized a gain on his class period purchases under the last-in, first-out (LIFO) method of matching purchases to sales. Judge Tauro noted:
Traditionally, individual questions regarding damages would not hinder class certification where a common question exists regarding liability. But the Supreme Court recently made clear that a securities fraud plaintiff must properly allege actual monetary loss—not merely harm related to purchasing at an increased price—in order to state a claim for securities fraud.