Skip to content

Litigation Services
Consulting
Knowledge
About Us

Litigation Services
Consulting
Knowledge
About Us

Defining the Difference

How a Fact-Based Business Analysis Resulted in the Dismissal of a Securities Action During Mediation

H.S. Grace & Company, Inc.'s Advisors' Combined Experiences Across Varied Disciplines Delivers Expertise to Address Client Issues

Background

Plaintiffs alleged damages by Defendants in a securities action due to the drop in the stock price. The initial mediation went poorly in the eyes of the primary D&O carrier. The D&O carrier requested H.S. Grace & Company (“HSG”) review the matter and develop Preliminary Findings for presentation to the subsequent mediation.

Limited Review

HSG performed a fact-based, business-focused, limited review of the actions by the Defendants and other relevant parties, including adequacy of disclosures of financial, operating, product, and other risks, as well as the actions of the directors and management during the period subject to the claim. A particular matter reviewed was that the stock experienced two distinct drops, both resulting from tests of the Defendant company’s only product which appeared to have disappointed the marketplace. The possibility of such outcomes was always made clear by Defendants.

Preliminary Findings: HSG Conclusions

“Based on the review and analysis of materials undertaken, as described in the Report, we do not believe the Defendants were casually related to the Plaintiffs’ alleged damages. The Defendants appear to have been fully forthcoming in the disclosure of the risks facing the Company, and they appear to have operated the company within the bounds of customary and ordinary good business practice guidelines. Additionally, the activities of the Defendants were approved and monitored by the FDA, and outside parties conducted the trials and related studies. It appears that any losses incurred by the Plaintiffs were due to fluctuations in the marketplace of a speculative stock, for which there were numerous disclosures made by the Defendants.”

Outcome

HSG’s Preliminary Findings were presented at a second mediation session with little opposition. Subsequently, Defense Counsel filed a motion to dismiss which was granted. This matter is a further example of how the HSG advisors, with their combined senior management experiences in varied disciplines, offer an unparalleled breadth and depth of expertise to address client issues.

Related

Previous

Next

Share the Post:

Related Posts

Photo of cash flying in the air

HSG Evaluates Appropriateness of Directors’ and Officers’ M&A Due Diligence

HSG Evaluates Appropriateness of Directors’ and Officers’ M&A Due Diligence

Commercial Real Estate concept. Woman with tablet depicting commercial real estate

Strategic Partnership Unites Commercial Real Estate Expertise

MACCO and HSG Form Strategic Consulting Alliance

Follow Us

CONTACT US

hsgraceco@hsgraceco.com

HOUSTON OFFICE 4615 SW Freeway, Ste. 625 Houston, TX 77027

+1.713.572.6800

NEW YORK OFFICE
100 Park Avenue, Ste. 1600 New York, NY 10017

+1.212.644.8620

Copyright © 2026 All Rights Reserved. H.S. Grace & Company, Inc.

Privacy Policy

Cookie Policy

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

Cookie Settings