This project was completed by Intensity. Intensity joined Secretariat on February 1, 2023.
A pharmaceutical company was alleged to have misrepresented (false advertising) the medical and health benefits of over-the-counter multivitamin products and doing economic harm to consumers that purchased those products. The claimants sought to certify a class for affected consumers and initiate a class action complaint to recover class wide economic damages.
Intensity was retained to determine an appropriate methodology for certifying the consumer class, and to perform economic analysis related to price premiums on products that were advertised with certain false claims. Intensity evaluated various methodologies for certifying the consumer class and proposed a methodology that was appropriate based on product sales data and consumer demographics.
Intensity also performed an analysis of damages relating to a class action complaint of unfair competition, violation of Consumer’s Legal Remedies Act, and false advertising relating to health products. Intensity estimated damages incurred based on an analysis of the economic effects of the alleged conduct on product sales and profitability.
Economic issues included class certification, price premiums, common class-wide impact, unfair competition, false advertising, and treble damages.
Managing Directors Michael Koenig and David Craig, writing in the American Bar Association Criminal Justice Magazine, examine the accelerating rise of ephemeral messaging and its growing impact on compliance, investigations, and litigation.
New York and California Step Forward as Federal Enforcement Retreats
As federal regulatory priorities narrow under the Trump administration, state attorneys general and financial regulators are preparing to take on a more active role in white collar and securities enforcement. With the DOJ and the SEC recalibrating their focus, states such as New York and California are asserting their authority to fill gaps in corporate oversight.
Policy News and Stock Market Volatility
When it comes to explaining stock market volatility, the story is rarely straightforward. In their article Policy News and Stock Market Volatility for the Journal of Financial Economics, Director Kyle Kost and coauthors Scott R. Baker, Nicholas Bloom, and Steven J. Davis revisit Robert Shiller’s 1981 finding that stock market fluctuations cannot be fully explained by realized future dividends.