Enhanced ATACm securities class action suit predictor
ATACm Class Action Suit predictor is enhanced
The Advisen Total Accrual metric (ATACm) is proven over 12 years to be a reliable indicator of Securities Class Action Suit risk, including for European companies with ADR programs. ATACm provides powerful insight into the risk of companies. On average since 1995, 35% of these suits were filed against the 10% of companies with the riskiest ATACm scores. If you are writing, broking or buying Public Company D&O, check the ATACm score on Advisen first. For European companies without ADR programs, ATACm offers a proxy risk score.
Sophisticated Design Generates Red Flags
Many Class Action Suits are the result of manipulation of
balance sheet accruals which often leads to restatements.
ATACm correlates current and historical accrual reporting
for every company publicly-traded in the US against Advisen's
database of over 3,700 securities class action lawsuits. This
Large Loss database consists of all Security Class Action
suits filed since 1995. ATACm results update with each quarterly
filing of financials in order to provide the latest risk score
based on current accruals.
For Public D&O Underwriters, ATACm presents a valid red flag to predict likelihood of a Security Class Action trigger event. ATACm can easily be incorporated into your Advisen Underwriting work-up, too. Also, no broker wants to be surprised by something the underwriter points out first; ATACm highlights these balance sheet accrual situations for you and your client, and shows you how your peer companies stack up, too.
Where to Find ATACm?
To run ATACm, select your company by ticker or name on Advisen,
then click on Analytics & Ratings and choose ATACm (Class
Action Risk). Click on the Change in Accruals Chart tab to
quickly pinpoint and chart specific balance sheet accruals
which may cause an increase in a company's ATACm risk score.
These balance sheet accruals would have been difficult to
spot in financial statements.
The ATACm Relevant Ratios tab also offers financial ratio comparisons against the industry to point out potential financial strength issues resulting from accruals, relevant to the ATACm risk score.
Note that you can search for companies that have certain ATACm scores using our Prospecting and Peers dropdown menu. If you need to generate a list of other companies that match a similar profile, Advisen offers you this utility, too.
To arrange a demo of the application, or for your password. Reach your Advisen rep at 212-897-4800 or click below to request more information.
