NERA Plays Important Role in Precedent-Setting Class Certification Ruling
15 January 2009
15 January/New York -- Analyses prepared by NERA Economic Consulting were an important factor underlying a recent precedent-setting ruling by the US Circuit Court of Appeals for the Third Circuit requiring lower courts to conduct a rigorous analysis of all relevant evidence and arguments before certifying a class. The ruling reversed an earlier decision by the US District Court for the Eastern District of Pennsylvania granting class certification in a suit alleging price fixing in the market for hydrogen peroxide. NERA was retained by Buchanan Ingersoll & Rooney, the law firm for Arkema, Inc. and Arkema France, defendants in the case.
Stating that "expert opinion with respect to class certification...calls for rigorous analysis," the appeals court ruled that the lower court erred when it declined to weigh the relative merits of plaintiff and defendant expert arguments when it decided to certify the class. The lower court had accepted the arguments of the plaintiffs' economic expert without taking into account the defendant's expert testimony, which raised substantial doubts about whether class certification was appropriate.
A team of NERA economists directed by Senior Vice President Todd Morrison have consulted on this litigation with Arkema's counsel since 2005. NERA Vice President John Johnson, Mr. Morrison, and staff worked closely with attorneys from Buchanan Ingersoll & Rooney to develop the arguments that served as the basis for Arkema's successful appeal of the class certification ruling.
"I am pleased that NERA was involved in this groundbreaking case," said Gary Dorman, Senior Vice President and Chair of NERA's Global Antitrust Practice. "It is gratifying to see such a successful outcome. As economists, we are pleased by the court's emphasis on rigorous economic analysis."
The Court of Appeals ruling returns the case to the US District Court judge, who will apply the rigorous new standards in reconsidering whether a class should be certified.
About NERA
NERA Economic Consulting (www.nera.com) is an international firm of economists who understand how markets work. Founded in 1961 as National Economic Research Associates, our more than 45 years of experience creating strategies, studies, reports, expert testimony, and policy recommendations reflects our specialization in industrial and financial economics. Our global team of more than 600 professionals operates in over 20 offices across North America, Europe, and Asia Pacific.
