David K.A. Mordecai, President of Risk Economics and Compass Lexecon affiliate, testified on behalf of Zurich Re, a major reinsurance firm, in a multi-billion dollar asbestos dispute with a bankruptcy trust. The dispute involved a complex arrangement which included excess of loss reinsurance, risk financing (in the form of both a stop-loss and loss portfolio transfer facilities), and investment management agreements, as well as a credit derivative. After a resounding win for the client on summary judgment, the plaintiffs later agreed to abandon their appeal with prejudice for a de minimus settlement amount. As a high profile, multi-billion dollar test case with national scope as well as international policy implications for the reinsurance industry, this was a significant outcome not just for Zurich Re, but for insurance regulators as well.
In connection with the work in this case, David Mordecai worked with Richard Mancino and others of Willkie Farr & Gallagher LLP, and was assisted by David Gross, Peter Clayburgh, Rahul Sekhar, Andria van der Merwe, and Timothy McNally in Compass Lexecon’s Chicago office.
David K.A. Mordecai is President and Co-Founder of Risk Economics, Inc, a New York City based advisory firm. The Risk Economics® litigation advisory practice provides advisory services and testimonial expertise on complex issues related to financial instrument valuation models and frameworks, market and industry standards and practices for the financing, risk management, active trading, and hedging of OTC derivatives and structured products. Dr Mordecai is Senior Advisor to and a Member of the Advisory Committee of Compass Lexecon.
As lead for the Risk Economics® litigation and arbitration advisory practice, David Mordecai serves as an expert on loss causation and economic damages related to market structure, financial institutions governance, and complex issues related to finance, economics and market standards and practices within securities, derivatives, reinsurance, and commodities markets, as well as market structure within a broad range of non-financial industry sectors. His expertise includes industrial and financial engineering, the valuation of fixed income securities and structured products, including over-the-counter derivatives (in particular fixed income and credit derivatives), complex insurance and reinsurance liabilities, as well as asset liability and risk management models and practices. Having testified extensively at deposition, trial, arbitration and international arbitration, he has been admitted as an expert in federal, state and county courts, and cited favorably in court decisions.