SCAS Analytics

Methodologies for calculating portfolio-specific securities losses

Securities Class Action Services Analytics offers a sophisticated Loss Calculator to permit clients to quickly identify their estimated losses in each new securities class action case.  Upon the filing of a new case, our Loss Calculator uses the client's data to automatically calculate losses under three standard accounting methods.

To use the SCAS Loss Calculation solution, clients provide SCAS with historical transactions and holdings for the period that they want SCAS to cover.  Many clients also rely on SCAS to file claims in securities class action settlements based on this same data, a separate service that SCAS provides to well over a hundred leading institutional investors.

SCAS Analytics calculates losses under three National Association of Public Pension Attorneys (NAPPA) formulas:

• FIFO - (First-In-First-Out methodology) Eliminates pre-class holdings by matching them with class period sales, matches class period purchases with remaining sales, and values retention shares using the PSLRA 90-day look-back provision.
• LIFO - (Last-In-First-Out) Matches the last purchases made during the class period with the first sales made during the class period, does not eliminate pre-class holdings, and values retention shares using PSLRA 90-day bounce-back provision.
• Recognized Damages - (Recognized Damages: a more conservative calculation of damages than FIFO, this formula accounts for the gain recognized during the class period of shares purchased before the class period)