SETTLEMENT SERVICES RECENT CASES
In re: TriCor Direct Purchaser Antitrust Litigation
The plaintiffs in this case are a class of direct purchasers of the brand-name prescription drug Tricor. They alleged that the defendants violated antitrust laws by improperly delaying the market entry of cheaper generic substitutes to Tricor (which is used to treat high cholesterol).
Econ One was retained by the plaintiffs’ counsel to opine regarding class certification issues and the calculation of damages. Jeffrey Leitzinger submitted three expert reports and was deposed twice in this matter. The first report related to class certification issues which included: (1) the likely impact of a delay in generic competition on the class; (2) the availability of economic methodologies and evidence, common to all class members, that would demonstrate impact in the form of overcharges; and (3) whether overcharge damages could be calculated on a class-wide, aggregate basis using reliable methodologies. Dr. Leitzinger also submitted an initial report and a rebuttal report addressing relevant market and market power, as well as aggregate class overcharge damages. The direct purchaser class claims were settled prior to trial and Dr. Leitzinger submitted a proposed allocation plan for damages to the court in support of the settlement. The court approved both his damages and allocation methodologies as fair and reasonable.
Linville Shockey, et al. v. Chevron U.S.A., Inc.
Chevron operated plants in Colorado, New Mexico, Oklahoma, and Texas that processed natural gas production. Landowners in those states filed this class action lawsuit alleging that Chevron underpaid royalties owed to them by engaging in affiliate transactions and by making improper deductions for production-related activities. The class period ran from 1980 to 2004 and included production processed at approximately two dozen plants located in the four states.
Econ One was retained by counsel for the plaintiffs. Barry Pulliam served as the damages expert and testified at the class certification hearings. The class of approximately 15,000 royalty owners was certified and upheld upon appeal. The parties ultimately settled with the defendant agreeing to pay $60 million to the plaintiffs. Mr. Pulliam also testified at a hearing to determine the fairness of the settlement.