In a class action against USN Communications (USN), the plaintiffs alleged that the company’s misstatements and omissions had misled the investing public regarding, among other things, USN’s billing capabilities.
Retained by Sidley Austin
In a class action against USN Communications (USN), the plaintiffs alleged that the company’s misstatements and omissions had misled the investing public regarding, among other things, USN’s billing capabilities. The plaintiffs claimed that the alleged fraud created a market for USN’s initial public offering and subsequently inflated the company’s stock price.
Defense counsel for USN’s auditors retained Cornerstone Research. We worked with Professor Michael Gibbons of the Wharton School, who analyzed the importance of audited financial statements to the market’s valuation of USN shares. With Professor Gibbons we conducted an event study, researched developments in the Competitive Local Exchange Carrier industry and produced a Rule 26 report. We also assessed the damages analyses of the plaintiffs’ experts. The court granted summary judgment in favor of our client.