Reliability Of 'Price Premium' Calculations In Class Actions

By Jon Tomlin (October 10, 2017, 1:31 PM EDT) -- In a multitude of recent class actions, plaintiff consumers have sought restitution for purchases of products that they allege were mislabeled or falsely advertised. Restitution in such cases is often determined by the "price premium" for the products at issue, defined as "the difference between the market price actually paid by consumers and the true market price that reflects the impact of the unlawful, unfair, or fraudulent business practices."[1] Under the U.S. Supreme Court's decision in Comcast v. Behrend,[2] trial courts have a duty to conduct a "rigorous analysis" in deciding class certification including assessing a plaintiff's damages model. In deciding whether to certify a class, recent trial courts have reached different conclusions on whether the price premium models proposed by plaintiff experts satisfy Comcast....

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