Global uncertainties have again generated substantial volatility in financial markets, especially in Asia.

This harkens to my research with David McKnight and Ferdose al-Taie, which showed that traditional "event studies"—used for loss causation and damages—can lead to the wrong conclusions during these exact times.

Our research found that even relatively moderate volatility changes are enough to distort statistical outcomes and produce flawed evidence. We also cover how to correct event studies for this issue.

The issue is broken down in the carousel. It covers: ➡️ Why market "noise" can invalidate evidence. ➡️ Visual data on recent volatility spikes. ➡️ The key question to ask.

You can read the full, in-depth research from our Law360 article here.