The Law and Economics of Class Actions

Legal and economic analyses overlap and interact in many areas. Recent U.S. Supreme Court and lower court decisions on class action lawsuits clearly focus on the critical role that economic analysis plays in determining the outcome of class actions. Wal-Mart Stores, Inc. v. Dukes and Comcast Corp. v. Behrend have made national headlines, raising the bar in class certification for showing common impact and preponderance through expert testimony. These decisions have turned on the adequacy of the analyses put forth by expert economists, finding the analyses of the plaintiffs' economists to be insufficient. The decisions will have significant implications for use of expert testifiers in class certification and in estimation of monetary damages, presenting challenges to both attorneys and economists in antitrust and other class actions. This book focuses on the changing landscape of class action law and its interaction with the economic analysis of key issues in class actions. Articles examine the elements of class action law from diverse viewpoints, featuring defendant and plaintiff perspectives, concerning domestic and international law, and written by lawyers and economists. Contents 6 List of Contributors 8 The Law and Economics of Class Actions: Yesterday, Today, and Tomorrow • James Langenfeld and Raleigh Richards 10 From Hydrogen Peroxide to Comcast: The New Rigor in Antitrust Class Actions • James Keyte, Paul Eckles and Karen Lent 20 The Class Cert Games: Coach, Commentator or Critic? • Joshua P. Davis 74 Antitrust Class Proceedings — Then and Now • Michael D. Hausfeld, Gordon C. Rausser, and Gareth J. Macartney, with Michael P. Lehmann and Sathya S. Gosselin 86 Econometric Tests for Analyzing Common Impact • Kevin W. Caves and Hal J. Singer 144 Assessing Market Efficiency for Reliance on the Fraud-on-the-Market Doctrine after Wal-Mart and Amgen • Mukesh Bajaj, Sumon C. Mazumdar and Daniel A. McLaughlin 170 European Collective Redress: Lessons Learned from the U.S. Experience • Ethan E. Litwin and Morgan J. Feder 218 Cartel Overcharges • John M. Connor 258