The plaintiffs were a class of purchasers of the common stock of KN Energy, Inc. (“KN”) who brought a securities fraud suit against Kinder Morgan. The plaintiffs alleged that KN made false and misleading statements which artificially inflated the price of KN’s stock and caused damages to class members.
Econ One was retained by counsel for the defendants to conduct an analysis of the plaintiffs’ claims including materiality, loss causation, and damages. Dr. Jeffrey Leitzinger submitted an expert report which contained economic and statistical analyses demonstrating that the plaintiffs failed as an economic matter to prove the existence of any inflation in KN’s price as a result of the alleged fraud. The case settled prior to trial.