David K.A. Mordecai Testified Regarding the Dynamics of the Auction Rate Securities Market
David K.A. Mordecai, testified regarding the dynamics of the auction rate securities (ARS) market before, during, and following the financial crisis at a FINRA arbitration hearing on behalf of Lehman Brothers, Inc. and certain of its employees. A former corporate client of Lehman’s asserted several causes of action against Lehman, including breach of contract, suitability, and negligent misrepresentation/deceit related to the recommendation and purchase of auction rate securities. Following a two-week hearing in Houston, the three-member panel returned a decision denying Claimant’s claims in their entirety.
Dr. Mordecai worked on this engagement with Philip Cook, Michael Wilson, and Haley McIntosh at Jones Day, and was supported by Kevin Dages and George Hickey in Compass Lexecon’s Chicago office.
David K.A. Mordecai is President and Co-Founder of Risk Economics, 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 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.
See Compass Lexecon 2011 Annual Newsletter for additional details.