Senior Associate Dr. Shastri Sandy coauthored a recent Colorado Technology Law Journal article describing how the use of AI decision models may cause disparate impact in areas such as credit and financing, employment, healthcare, and housing.

The authors provide examples of how AI models may contribute to disparate impact, discuss protected classes and the relevant laws that may be violated due to disparate impact, and include suggestions of where biases in AI decision-making may be headed in the future. also provide an overview of statistical, economic, and qualitative tools that can be used to evaluate and mitigate AI-induced disparate impact.

The full article, “The Disparate Impact of Artificial Intelligence and Machine Learning,” is available below.

View Article

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“Alison is a wonderful addition to Brattle’s Accounting practice and growing Chicago office,” said Brattle Interim President & Principal David J. Hutchings. “She will greatly expand our capabilities in advising clients on financial accounting and reporting disputes.”

Ms. Forman has over two decades of consulting experience spanning numerous industries, including financial institutions, healthcare, real estate, oil and gas, high-tech, and retail. She has worked with testifying experts and attorneys at all phases of litigation, providing complex analyses, financial modeling, and expert reports, and worked on enforcement matters brought by the US Securities and Exchange Commission (SEC), the Public Company Accounting Oversight Board (PCAOB), and state boards of accountancy.

Her expertise includes applying and evaluating compliance with Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and American Institute of Certified Public Accountants (AICPA) and PCAOB auditing standards. Ms. Forman has experience evaluating alleged financial reporting fraud, the effectiveness of internal control over financial reporting (ICFR) materiality and assessment of errors, financial restatements, auditor independence, and alleged auditor misconduct.

“I am thrilled to be joining Brattle’s robust team of Securities experts,” said Ms. Forman. “I look forward to helping the firm’s Accounting practice grow while helping clients navigate complex litigations and investigations.”

Prior to joining Brattle, Ms. Forman was a Principal at an international economics consultancy. She is a certified public accountant (CPA) and certified in financial forensics (CFF) by the AICPA.

To learn more about Ms. Forman, see her full bio.

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In a new white paper, Brattle Principal Ioannis Gkatzimas, Senior Associate Ryan Leary, and Research Analyst Musa Isani examine the transition away from USD LIBOR in the US market, detailing USD LIBOR’s downfall and the emergence of its recommended replacement, the Secured Overnight Financing Rate (SOFR). They also discuss a few market-based alternatives to SOFR, the initiatives and legislation designed to address challenges associated with the USD LIBOR transition, and the economic considerations for potential litigation that could arise related to the transition.

The full white paper, “From USD LIBOR to SOFR: A Look at LIBOR’s Exit, SOFR’s Ascendance, Emerging Alternatives, and Economic Considerations for Litigation,” is available below.

View White Paper 

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In a recent article for Law360, Brattle Principal Dr. Christine Polek and Senior Associate Dr. Shastri Sandy explore how the use of AI decision models can cause disparate impact in areas such as housing, employment, credit, and healthcare – and, in turn, violate relevant laws and protections. They discuss some of the red flags regulators and consumer advocacy groups have raised about algorithms’ potential to produce discriminatory results, and provide an overview of statistical, economic, and qualitative tools that can be used to evaluate and address AI-induced disparate impact.

The full article, “Don’t Assume AI is Smart Enough to Avoid Unintended Bias,” is available below.

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The winners of the 2022 Brattle Group Prize in Corporate Finance are:

First Prize, $25,000: Andreas Fuster, Paul Goldsmith-Pinkham, Tarun Ramadorai, and Ansgar Walther
Predictably Unequal? The Effects of Machine Learning on Credit Markets
The Journal of Finance, February 2022

Distinguished Paper, $10,000: Asaf Bernstein
Negative Home Equity and Household Labor Supply
The Journal of Finance, December 2021

Distinguished Paper, $10,000: Isaac Hacamo and Kristoph Kleiner
Forced Entrepreneurs
The Journal of Finance, February 2022

The Brattle Group has funded this annual award for more than 20 years. These prizes are presented at the AFA’s annual meeting, and this year’s awards were announced at the AFA’s Annual Meeting 2023, which took place January 6–8 in New Orleans, LA. All papers published in issues of The Journal of Finance from the first five issues of the given year, and December of the previous year, are eligible. We congratulate the winners on their achievements!

View a complete list of past winners

More about the AFA

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Senior Associate Dr. Nguyet Nguyen compares informed trading in a fair-access dark venue with  restricted-access dark venues in a recent article published in The Quarterly Journal of Finance. Dr. Nguyen found robust evidence of informed trading taking place in the fair-access dark venue, but not in other dark venues.

The full article, “Informed Trading in Dark Pools: Fair-Access Dark Venue vs. Restricted-Access Dark Venues,” is available for download below.

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Dr. Goldstein will also continue in his capacity as Professor of Finance at Babson College, where he holds the Donald P. Babson Chair in Applied Investments. He specializes in examining the structure of equity and bond markets and does work in climate change, dividend policy, asset pricing, real estate, and privatization.

We wish Dr. Goldstein all the best in this new role.

The post Brattle Congratulates Academic Advisor Dr. Michael Goldstein on Appointment as Secretary/Treasurer of the Financial Management Association appeared first on Brattle.

“Toby is a welcome addition to Brattle’s Electricity group and our firm more broadly,” said Brattle President & Principal David L. Sunding. “With his regulatory expertise and breadth of experience working with electric and natural gas utilities, he will add depth to our firm and be a vital asset to clients.”

Mr. Bishop’s expertise extends to strategic, regulatory, financial, and transactional matters for electric and natural gas utilities, natural gas pipelines and storage developers, and independent energy project developers. He has worked on federal and state rate case proceedings, valuations for ad valorem tax disputes, utility municipalization efforts, contractual disputes, purchase and sales transactions, regulatory strategy and policy matters, and competitive and market power concerns.

He has provided expert testimony and other filings in over 50 administrative and civil proceedings in the US and Canada, including before the Federal Energy Regulatory Commission (FERC), the Canada Energy Regulator (CER), and state and provincial regulatory agencies.

“I am thrilled to join the respected team of economists at The Brattle Group, especially during this pivotal time for the energy industry,” Mr. Bishop said. “I look forward to helping the firm continue its success and collaborating on regulatory economics and finance matters.”

Previously, Mr. Bishop was a Senior Vice President at an economic consultancy, and he also held positions at two management consultancies.

To learn more about Mr. Bishop, please see his full bio.

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“These talented individuals provide in-depth expertise to a vast array of clients on matters related to financial services, energy, tax, and more,” shared Brattle President & Principal David Sunding. “In addition, they have made exemplary contributions to mentoring and developing their colleagues, and truly demonstrate the exceptional leadership pipeline we are fortunate to have at the firm.”

Our new Principals:

• Hollie Mason | Practice Leader: Broker-Dealers & Financial Services | Chicago
  An attorney with more than 15 years of experience in the financial industry, Ms. Mason provides expert testimony and consulting services concerning securities litigation and enforcement matters. She has deep knowledge of Financial Industry Regulatory Authority (FINRA) and Securities & Exchange Commission (SEC) rules.
• David McKnight | New York
  Mr. McKnight has over 20 years of experience providing expert testimony and consulting services in matters pertaining to mass torts, securities, finance, valuation, and bankruptcy. In mass tort matters, he has worked with liability forecasts, insurance coverage, and discounted cash flows.
• Albert Metz | New York
  Dr. Metz is a securities and finance expert with deep experience in credit analysis, financial modeling, asset pricing, market efficiency, and event studies. He has consulted on asset pricing, antitrust, mergers and acquisitions, market manipulation, collusion, fixed income securities, and various debt derivatives.
• Christine Polek | Boston
  Ms. Polek serves as a consulting and testifying expert in complex litigation requiring the application of economic, financial, and statistical analysis to legal and regulatory issues – with a focus on valuation, tax controversy, and labor and employment.
• Akarsh Sheilendranath | Boston
  Mr. Sheilendranath is an energy economist with a unique blend of expertise in wholesale electricity markets, electric transmission, and regulatory corporate finance. He specializes in transmission policy, utility investment strategy and planning, large-scale renewable integration, and cost-benefit assessments.
• Anul Thapa | Boston
  Mr. Thapa has over 12 years of experience applying economic and finance principles in complex oil and gas-related litigation, arbitration, and regulatory proceedings. His experience in commercial disputes includes damages estimation, valuation, and pricing related to energy assets and contracts.
• Mike Tolleth | New York
  Mr. Tolleth specializes in the economic analysis of energy markets, with expertise in financial modeling and valuation of energy assets, contracts, and businesses. He supports clients in litigation and arbitration matters and provides expert testimony related to cost of service, rate design, cost of capital, regulatory policy, long-run marginal cost pricing, and market power.

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