Predicting securities
class action risk

Sanction AI's machine learning solutions help public companies, institutional investors, and legal professionals track the risk of securities class action litigation

Scroll Down

Our methodology

Machine learning, natural language processing, and alternative data in perfect harmony

We use leading-edge proprietary natural language processing technology to accurately classify over 430 different types of business event for companies mentioned in the global media. We then apply machine learning models to quantify and predict the risk of securities class action litigation for each company on a daily basis, to help companies, investors, and their advisors mitigate, prevent, and defend class action claims.

What we offer

An early warning system for class action risk

We provide advanced class action risk analytics that can identify potential securities law suits before they get filed, giving companies, institutional investors, and legal professionals a vital head start.

Factor attribution to build and defend claims

When a class action claim commences or looks likely, we can help to attribute the stock price declines to specific business events.

Early warning

Early warnings for companies, investors, and their advisors when our predictive models detect an increased risk of securities litigation.

Assessment & explanation

Assessment and explanation of predictive risk factors so preventative action can be taken.

Analysis & evidence

Analysis and evidence to help law firms build or defend securities class action claims.

Why Sanction?

Securities class actions are on the rise, with disastrous consequences

Sanction AI provides a vital early warning system to help public companies, institutional investors, and legal professionals identify risks and opportuntities, and mitigate risk.

Highest litigation rates since 2006

In 2018, over 400 new securities class actions were filed in US federal courts, nearly double the 1997-2017 average. At the same time, the litigation rate for US companies rose to 9%, and 5% for non-US companies, the highest rates since 2006.

Financial and reputational damage

Most securities class actions claim a failure of governance, undermining confidence in the company's leadership. Any financial settlement has a direct impact on investors who will suffer from the costs and reputation damage to the company.

Impact on stock price volatility

Media coverage of these securities class actions has a direct impact on stock price volatility. On days when the media reported that shareholders were suing a company, there was a 19% increase in the daily volatility of those stocks.

Early warning is vital

More than a third of securities class actions are filed the same day as the claim period end, so both claimants and defendants need to move quickly to build and defend their cases.

Contact Us

We're almost ready to launch, so if you're a company, institutional investor, or legal professional, we'd love to hear from you.

Stay in touch