EI News and Notes

Economists Ink: A Brief Analysis of Policy and Litigation

Competitive effects of a proposed acquisition of casinos

EI Principal William P. Hall testified on behalf of Icahn Partners in United States Bankruptcy Court. Icahn Partners controls an Atlantic City casino and submitted a plan to acquire three others. Dr. Hall, who has testified before the New Jersey Casino Control Commission (NJCCC) on three separate acquisitions, testified that competition would continue to remain vigorous even if Icahn Partners controlled the four casinos. Thus, neither the Federal Trade Commission nor the NJCCC was likely to object if the court were to accept the plan. The court agreed with Dr. Hall’s testimony and concluded that neither agency would stop the acquisition.

Speedo USA and United States Swimming, Inc. defeat unfair competition claims

EI President Jonathan L. Walker was the antitrust liability expert for Defendants Warnaco Swimwear, Inc. (dba “Speedo USA”) and United States Swimming, Inc. in a case involving advanced swimsuits. TYR Sport Inc. sued Speedo USA, the U.S. distributor of Speedo brand swimwear, and United States Swimming, the national governing body overseeing U.S. participation in international swimming competitions. TYR alleged restraint of trade, false advertising, and disparagement of TYR’s brand of swimsuit. The court granted summary judgment for the Defendants in part because of a lack of proof of harm to competition.

Baby Center, LLC succeeds in arbitration

EI Vice President Laura A. Malowane assisted Baby Center in a claim against them by GSI Commerce Solutions. The matter involved allegations that the Internet retailer had breached a contract with GSI. For the JAMS arbitration hearing of the matter, Dr. Malowane assisted Baby Center in identifying the erroneous calculations and faulty assumptions in the plaintiff’s expert’s damages report. The arbitrator cited many of these errors as reasons for his conclusion that the plaintiff’s expert’s damage analysis was unreliable and for his final award of damages of $1.