Patent Document ID: 20070299788
Application ID: 11811408
Patent Flag: 0

Claim One:
1. A method of determining damages in securities violation litigation, the method comprising the steps of: a) determining a class period in which shares were daily traded at prices affected by a securities violation, b) determining daily total sales of shares, and separately determining daily total purchases of shares for each date from N days prior to a start date of the class period until a last date of the class period, from available daily total transaction share volume, by operation of a programmed computer; c) determining daily average trade propensity as a function of a daily bid-ask spread for the shares on each purchase date from available daily average bid-ask spread data, by operation of the programmed computer; d) determining a number of the shares that were damaged by the securities violation in the class period as a function of daily average trade propensity, by operation of the programmed computer; e) determining a price difference per share in the shares affected by the securities violation, by operation of the programmed computer; and f) determining the damages from the number of the damaged shares and the price difference per share, by operation of the programmed computer.