Vesta Insurance Group, Inc., Securities Litigation

Shareholders sued the company and its auditors for securities fraud, claiming that the stock price was artificially inflated for the prior three years.

Retained by Hogan and Hartson

Following its disclosure of accounting irregularities and other restatements to its historical financial statements, an insurance company’s stock fell more than 46 percent. Shareholders sued the company and its auditors for securities fraud, claiming that the stock price was artificially inflated for the prior three years. Retained by defense counsel, we worked with a finance professor to determine how the company’s stock price would have differed given its restated financial statements, to analyze the differential impact of the accounting irregularities, and to evaluate the damage analysis of the plaintiffs’ expert. After experts from both sides submitted reports, the case settled.