In re Merrill Lynch’s Empirical Analysis

Citation profile

1 federal appellate · 1 district · 3 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 7 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “[Ascertaining what prices are reasonably available in any particular situation may require a factual inquiry into all of the surrounding circumstances.... Other terms in addition to price are also relevant to best execution. In determining how to execute a client’s order, a broker-dealer must take into account order size, trading characteristics of the security, speed of execution, clearing costs, and the cost and difficulty of executing an order in a particular market. When the plaintiffs state that better “prices” were reasonably available from sources other than the NBBO, we understand that to mean that, given an evaluation of price as well as all of the other relevant terms, the trade would be better executed through a source of liquidity other than the NBBO (e.g. Se-lectNet, Instinet, in-house limit orders or market orders held by the defendants, or limit orders place by the public in the Small Order Execution System).”

   1 later decision quote this exact passage
   e.g. Newton v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

2. “based on my work and my familiarity with statistical relationships which can be powerfully applied to relevant market data, it is my opinion a reliable measure of damages can be developed in this case based on the application of well-established statistical techniques. Based upon an analysis of the types of data set forth in Plaintiffs' Damage Submission, I can devise a formula which measures class-wide damages and from which a plan of allocation can be constructed. I will develop the formula using explanatory variables that have been widely-used in published studies analyzing transaction costs and the bid-asked spread. I will test the formula against actual transaction data to make any necessary adjustments. The methodology described herein will, in my opinion, yield a reliable measure of damages suffered as a result of the practices challenged in this lawsuit.”

   1 later decision quote this exact passage
   e.g. Newton v. Merrill Lynch, Pierce, Fenner & Smith, Inc.

3. “[c]lass treatment of damages issues, however, presumes the ability to prove the fact of damage without becoming enmeshed in individual questions of actual damage ... [.] Where proof of fact of damage requires evidence concerning individual class members, the common questions of fact become subordinate to the individual issues, thereby rendering class certification problematic.”

   1 later decision quote this exact passage
   e.g. Newton v. Merrill Lynch, Pierce, Fenner & Smith, Inc.