What We Do
Bates White is an economic consulting firm. We are retained by law firms, Fortune 500 corporations, and government agencies to support litigation and other business needs involving complex, high-stakes matters that require innovative problem solving. Our engagements span a wide spectrum of industries and areas of focus. We serve as expert witnesses and testify at trial, and we provide consulting advice to companies and their lawyers on the strengths and weaknesses of economic arguments in both defense and plaintiff cases.
Our work combines advanced economic, financial, and statistical analytical tools with the latest developments in economic theory. We provide analysis that quantifies a defendant’s potential damages exposure or a plaintiff’s potential recoveries. We work closely with our clients to integrate our results when determining litigation and settlement strategies. Since our work is often reviewed by economists for the adverse parties, it must withstand intense scrutiny. We have earned a reputation for developing clear and defensible solutions to the most challenging problems.
Here are a few examples of our work:
- Monopolization—Bates White was retained by Advanced Micro Devices, Inc. (AMD) in a lawsuit brought against Intel Corporation for its conduct related to computer microprocessors. Our consultants supported three expert economists who submitted reports analyzing whether Intel’s business practices had foreclosed AMD from the microprocessor market. They also calculated AMD’s lost revenues and profits attributable to Intel’s alleged conduct. As part of the largest electronic document discovery effort in history, our consultants analyzed microprocessor sales from Intel and AMD and developed an econometric model capable of distinguishing the impacts of Intel’s alleged conduct and other factors on AMD’s revenues. We also evaluated subpoenaed emails, presentations, and spreadsheets to understand Intel’s business practices and evaluate how these practices served to foreclose AMD. In November 2009, Intel agreed to pay AMD $1.25 billion and to refrain from certain allegedly anticompetitive business practices.
- Healthcare—Bates White testified on behalf of the leading pharmaceutical manufacturers on pharmaceutical pricing practices in In re Pharmaceutical Industry Average Wholesale Price Litigation. To support these efforts, our consultants performed extensive analyses and research that became a critical part of our clients’ strategies. This included processing and analyzing data on Medicaid claims for more than 30 states, developing advanced algorithms to help determine how claims were paid, and using geographical mapping software to display our results. Consultants also conducted extensive government and industry research that showed how pharmaceutical products are priced.
- Price-fixing—Bates White was retained by plaintiffs in In re Vitamins Antitrust Litigation, one of the largest criminal fines in US history (more than $900 million) for cartels. To support this effort, our consultants obtained and analyzed more than 20 years of pricing data and developed state-of-the-art economic models to estimate the amount by which prices increased as a result of the cartel. In addition, we supported a testifying expert whose analysis suggested that the price-fixing activity started several years prior to the defendants’ guilty pleas. Our analysis was an integral part of our clients’ litigation and settlement strategy and was the basis for recoveries among the largest ever in U.S. civil antitrust litigation.
- Energy—Dr. Kathleen King provided expert testimony as a rebuttal witness in the Amaranth alleged market manipulation case before FERC. At Dr. King’s direction, our consultants analyzed several years of trading data in the New York Mercantile Exchange (NYMEX) Natural Gas Futures market and developed economic models to determine if price movements were consistent with the manipulative scheme alleged by FERC. The statistical analyses demonstrated that the at-issue trading behavior was unusual when compared with the behavior of other market participants and when compared to Amaranth’s own historical behavior. We also examined news events and fundamental supply and demand factors and found no evidence that news or market fundamentals caused the unusual price movements on the alleged manipulation days. Bates White also supported two other expert witnesses in the case.
- Environmental and Product Liability—Bates White is a market leader in valuing and forecasting current and future environmental and product tort liabilities. We have worked on liability and insurance valuation cases involving numerous major manufacturing companies including Kasier Aluminum, General Motors, and Pfizer. For example, in insurance coverage litigation involving Owens Corning, by analyzing two decades of litigation settlement data, our consultants developed sophisticated epidemiological and statistical models that more accurately predict future liability. This work has translated into hundreds of millions of dollars in savings for our clients.
- Finance—Bates White was retained by the trustee and unsecured creditors of a fraud-riddled bankrupt company in litigation against major banks for their role in aiding and abetting breach of fiduciary responsibility. Our consultants performed research on comparable companies’ financials throughout the time period in which fraud was occurring, particularly leverage and capital expenditures, ownership, control, debt structure, and acquisitions. In addition, consultants contributed to the construction of a damages model that evaluated the value destruction of the company through time due to the fraud. For the model, consultants collected detailed financial data using SEC filings and Bloomberg as well as data provided through the litigation process. Our analysis supported an expert report that was filed in the litigation.