Litigative Economics

RRC has extensive experience in assisting attorneys in relating complex legal matters to economic, financial, and statistical evidence. RRC has been successful in the analysis of issues such as contract violations, product liability and warranty, theft of trade secrets, discrimination, monopolization, price-fixing, monopsony purchasing, boycotts, licensing restrictions, and damage theories. Often economic evidence suggests a line of argument, supported by sound economic theory, which narrows
the scope of a case and offers an efficient, effective avenue for successful litigation. 

Risk Analysis and Financial Instruments

The creation of new financial instruments in the financial markets has been followed with suits contending negligence or fraud on the part of the party trading in these new instruments. Banks and large corporations have made use of financial derivatives in hedging against detrimental market swings. The intended purpose of many of these financial instruments is to reduce risk. Plaintiffs' suits typically argue that the result of taking positions in these instruments is higher risk and substantial loss or that marketing information did not explain the true risks. Corporate officers are sometimes alleged to have overvalued these assets, thereby misleading investors. The courts must understand the nature of these financial instruments and the degree to which their values change with market conditions. Economic analysis is useful in establishing a reasonable basis for valuing these instruments and illustrating the risk-reducing objectives of the parties involved. In some instances it is important to explain the use and purpose of risk-adjusted discount rates in determining the values of certain assets.