**State-of-the-Art Financial AI R&D
Hudson Labs risk scores predict fraud-related class action litigation
Hudson Labs found that red flags related to governance, internal controls, management turnover, and other issues precede fraud-related class action lawsuits. The paper demonstrates that SEC disclosures can effectively anticipate legal action. Our tools are used by hedge funds, insurers, accountants, plaintiff class action firms, and others.
Read the research paper here.
Case Studies
- Super Micro Computer SMCI
- iLearningEngines $AILE
- Peloton PTON
- Lucid Group LCID
- Opendoor Technologies OPEN
- Robinhood HOOD
- Core Scientific CORZ
- Cano Health CANO
- Rafael Holdings RFL
- Hudson Labs vs. Short Activists: link
Hudson Labs’ high vs. low risk companies see 20+ point differential in returns
Hudson Labs' highest risk companies had average returns of -22% while the lowest risk companies had returns of -1%. At the time of the test, results were measured over the 12-month period from June 7, 2021 to June 7, 2022.
