On the theory that the filing of securities class actions creates trading opportunities, a new website called “SCAEstimate.com” uses a database of 1000 past securities class action cases to provide reports on companies which have a securities lawsuit filed against them. The reports assess the odds on the company’s future share price and the cost of settling these cases.
In a press release today, SCAEstimate.com states that after companies have a securities lawsuit filed against them, SCAEstimate.com provides the odds and dollar ranges related to defense and plaintiffs’ legal fees and expenses, settlement costs, and the estimated time it will take to resolve the case.
SCAEstimate.com was started by Colin Thompson in 2008. SCAEstimate.com’s press release states that “Mr. Thompson has worked for ten years in the actuarial area of the insurance industry. He brings a traditional actuarial approach to the examination of troubled companies.”
A sample report from SCAEstimate.com on Morgan Stanley is available here.