Frank Schneider specializes in addressing complex financial and economic issues that arise in litigation and regulatory investigations, such as disputes related to M&A transactions, securities, valuation, and financial institutions, as well as white collar issues. He has extensive experience assessing loss causation, damages, and valuation issues across a range of industries and financial instruments, including in the context of Rule 10b-5/Section 11 securities class actions. Many of the financial and statistical evaluations Dr. Schneider provides for internal and regulatory investigations require sophisticated analysis of big data.
Dr. Schneider has experience in all phases of litigation, including mediation, deposition, class certification, arbitration, and trial. He leads large teams, often working with multiple experts. His representative experience includes:
Valuation and M&A
Dr. Schneider leads the M&A valuation group at Cornerstone Research. He has conducted valuation analyses in a variety of contexts:
- Performed valuation analyses in connection with fairness opinions for M&A transactions, including in appraisal litigation in Delaware
- Performed valuation of a major financial institution involved in a merger during the credit crisis
- Estimated lost profits from alleged breach of contract
- Supported experts in addressing valuation issues arising from the purchase of a minority stake
- Assessed the impact of a new drug’s entry into an existing market
Dr. Schneider has analyzed loss causation, class certification, liability, and damages in numerous Rule 10b-5, Section 11 and Section 16, and ERISA cases alleging accounting misstatements, fraudulent earnings guidance, and other misconduct:
- Evaluated whether securities traded in an efficient market
- Used event studies to measure stock price reaction to news releases
- Examined characteristics of securities traded on multiple exchanges
- Assessed loss causation and damages in 401(k) company “stock drop” litigations
- Analyzed stock price response to earnings surprises
- Researched value of corporate control and voting rights
Dr. Schneider has addressed issues involving banks, insurance companies, and mortgage originators. In particular, he has analyzed the connections among economic trends, changes in the regulatory environment, and company performance:
- Addressed issues related to market structure, competition, class certification, and damages in matters involving alleged manipulation of setting of interest rate benchmarks, as well as in a municipal derivatives antitrust investigation and in foreign exchange antitrust matters
- Assessed quality of execution of FX transactions
- Analyzed off-balance-sheet conduits, such as structured investment vehicles (SIVs) and the impact of liquidity on their portfolio securities including collateralized debt obligations (CDOs) and residential mortgage-backed securities (RMBS)
- Analyzed liquidity, both market-wide and for specific securities
- Evaluated class certification issues in cases involving institutional investors
- Addressed allegations by the Securities and Exchange Commission (SEC) that a bank made inadequate disclosures and thereby misled investors about certain risks
- Assessed an independent sales organization’s claims against a merchant bank in the credit card space
Dr. Schneider has extensive expertise with mutual funds, hedge funds, and private equity funds:
- Investigated investment strategies, including portfolio risk, performance, fees, consistency with disclosed investment guidelines, and shareholder investment and redemption behavior
- Evaluated issues related to asset allocation, portfolio securities pricing accuracy, fair value of certain securities, fund liquidity procedures, and internal controls
- Conducted detailed analysis of large-scale position-level data, including data on equities, futures, swaps, bonds, PIPE (private investment in public equity) financing, and other securities
- Analyzed riskiness of municipal bond funds
- Assisted counsel in a regulatory investigation pertaining to losses incurred by a hedge fund
- Developed analyses to rebut alleged damages claims against a service provider for a failed hedge fund
- Investigated hedge fund customs and practices for separation agreements, including noncompete provisions
- Evaluated investment strategies, the structure of private equity funds, and compensation
- Calculated value of a company in a dispute over the transaction price in a leveraged buyout
Credit rating agencies
In a range of matters, Dr. Schneider has analyzed the role of credit ratings in financial markets:
- Assessed rating agencies’ general methodologies to determine the creditworthiness of corporations or financial instruments
- Analyzed reasonableness of credit rating models, their inputs, and implementation
White collar litigation
Dr. Schneider has assessed damages in several cases involving alleged Ponzi schemes, and has evaluated materiality and damages in insider trading cases and SEC actions:
- Supported an expert to rebut the SEC’s allegations of insider trading
- Assessed putative damages in a case involving an international Ponzi scheme
Prior to joining Cornerstone Research, Dr. Schneider worked at Protego Asesores Financieros (now part of Evercore) as a senior investment banking analyst, focusing on private equity transactions, M&A transactions, and valuation matters.
Energy Industry Arbitration
Accounting-Related Securities Class Action Filings Continue to Rise in 2020
The Potential Impact of COVID-19-Induced Volatility on Business Valuation in M&A and Bankruptcy Litigation
Financial Strategies for Oil and Gas Cos. During the Slump
Mooney et al. v. Diversified Business Communications et al.
Regulatory Investigation Pertaining to Losses Incurred by a Hedge Fund
Appraisal Litigation in a Going Private Transaction
Firefighters’ Retirement System et al. v. Citco Group et al.
- Energy Industry Arbitration
- Mooney et al. v. Diversified Business Communications et al.
- Regulatory Investigation Pertaining to Losses Incurred by a Hedge Fund
- Appraisal Litigation in a Going Private Transaction
- Firefighters’ Retirement System et al. v. Citco Group et al.
- Assessing Putative Damages Attributable to a Third-Party Service Provider
- Excessive Risk: Corporate and Municipal Bond Funds
- Securities and Exchange Commission v. BankAtlantic Bancorp Inc.
- City of Pontiac Policemen’s and Firemen’s Retirement System et al. v. UBS AG et al.
- SEC Allegations of Insider Trading
- Hedge Fund Contract Dispute