Plaintiff in this matter alleged that the Company was engaged in a fraudulent and manipulative scheme, concealed by misrepresentations and omissions, which enabled the Company to inappropriately register shares, benefit from the sale of those shares, and qualify for trading on the NASDAQ, among other things. Crowninshield Financial Research provided expert analysis demonstrating that the market in which LongFin traded was efficient and that the alleged misrepresentations and omissions caused investor losses.
On 14 May 2020, the Southern District of New York Court granted Plaintiff’s motion for entry of default judgement. Crowninshield Financial Research was credited by the Court in its Opinion and Order for the provided opinions on loss causation and per share damages. The Court also accepted the calculation of class wide damages as appropriate and relied on the calculation to awarded damages to the class.
“The expert report submitted by Lead Plaintiff … demonstrates that it is appropriate to calculate the artificial inflation in Longfin’s stock price as ranging between 55% and 89% during the class period. While the SEC has estimated investor harm in the class in the amount of $27 million, it sought disgorgement, rather than out-of-pocket damages. Damages to the class in the amount of $223,037,680 is, therefore, awarded.”Opinion and Order on Motion for Default Judgement, issued 29 July 2020.