2014 Newsletter Summary
Last year was another exceptional year for Compass Lexecon as reflected in the matters on which we were retained, the results our clients’ achieved, and the quality of the experts and staff we attracted. We continue to be hired on the biggest, most complex cases and mergers around the globe.
For example, we worked (or are working) on the most important mergers: Staples/Office Depot; AT&T/DIRECTV; Comcast/Time Warner Cable; Reynolds/Lorillard; Sysco/US Foods; and Halliburton/Baker Hughes. In antitrust litigation, we worked on the CRT Price Fixing Litigation, the Optical Disk Drive litigation, and many others. In addition, in early 2015, Compass Lexecon was named the Competition Economist Firm of the Year by Who’s Who Legal which included 33 Compass Lexecon experts and five additional academic affiliates from six different countries in its Who's Who of Competition Economists and named Janusz Ordover Competition Economist of the Year. Among other awards, Compass Lexecon’s Dennis Carlton was named the 2014 Economist of the Year by Global Competition Review.
Our litigation and finance practice also continued to thrive in the past year as we’ve served as consultants and experts for both plaintiffs and defendants for clients such as: iHeart (formerly Clear Channel) in an industry-wide rate setting proceeding for non-interactive webcasting before the Copyright Royalty Board; the Federal Housing Finance Agency in its multi-billion dollar mortgage backed securities litigations against various financial institutions; and British Petroleum in its complex litigation and settlement proceedings resulting from the Gulf oil spill. We’ve continued our dominant role as experts in the largest high stakes securities fraud and insider trading cases, ERISA cases, and state court proceedings in Delaware and elsewhere involving corporate governance, takeover and appraisal issues. We’ve also gotten increasingly involved in newer areas of litigation and investigation such as high frequency trading disputes and spoofing claims.
In the international arbitration arena, our clients won significant victories in a range of cases, including the largest settlement ever paid by Bolivia. In a survey of general counsel and private practice lawyers globally, Compass Lexecon’s Pablo Spiller was named as one of the five most highly regarded experts in arbitration cases, and 13 other Compass Lexecon experts – from three continents – were listed among the top economic experts in the world. People on our team were described as “legendary,” “pre-eminent for treaty disputes,” “renowned,” “formidably intelligent,” and “perceptive, to the point and extremely well reasoned.”
We also continued to add to our roster of experts. In the competition space, we added Marius Schwartz, a Professor in the Department of Economics at Georgetown University and a former FCC Chief Economist; David Dranove, the Walter McNerney Distinguished Professor at the Kellogg School of Management of Northwestern University, a leading expert on healthcare matters; and Andrew Sweeting, an Associate Professor in the Department of Economics at the University of Maryland focusing on industrial organization. In the finance space, we added Hendrik Bessembinder, the A. Blaine Huntsman Chaired Presidential Professor in the David Eccles School of Business at the University of Utah, a world-renowned market microstructure and trading expert; Michael Johannes, a Professor of Finance in the Graduate School of Business at Columbia University, an expert in complex derivatives, hedge funds and risk management; Ilya Strebulaev, a Professor in the Graduate School of Business at Stanford University, an expert in corporate finance, private equity and credit risk; and Dr. Andrew Roper, an expert in financial markets based in Silicon Valley.
2013 Newsletter Summary
Every year for the past few years we have begun this annual newsletter with the statement that the year was more successful than any previous year. This year we are once again proud to announce that 2013 was the best year by far in Compass Lexecon's history.
We continued to be hired in the highest percentage of the biggest, most complex cases and mergers around the globe. For example, we worked on the most important mergers of the past year: US Airways/American Airlines; OfficeMax/Office Depot; AB Inbev/Grupo Modelo; Comcast/Time Warner Cable, and Omnicom/Publicis. In antitrust litigation, we were similarly involved in the most important antitrust litigation matters, including the Rail Freight Fuel Surcharge Antitrust Litigation; LCD Price Fixing Litigation; U.S. v. Apple, among many others. Our finance practice and general litigation practice enjoyed similar success as we continued to be the firm of choice when economic experts are required in major litigation. We were immersed in major litigation including multiple matters arising out of the BP oil spill, various major residential mortgage-backed security and derivatives matters, disputes arising from the 9/11 terrorist attack on the World Trade Center, civil and criminal insider trading matters, multi-billion dollar fraudulent conveyance litigation, foreign exchange disputes, the economics of the pension crisis for governmental entities, LIBOR litigation, takings cases, Delaware Chancery merger, appraisal and damages litigation, and insurance/reinsurance disputes, to name just a few examples. We also continued to expand our expertise in intellectual property matters and were involved in a number of high profile cases in the IP space this year.
Our international arbitration practice continues to thrive and grow. Eleven Compass Lexecon team members from three continents were recognized in a survey of general counsel and private practice lawyers globally as among the top international commercial arbitration experts in the world with quotes like "phenomenal," "distinguished," "great under cross examination," "one of the most popular appointments in valuation of investment arbitration," and having a "insight and intelligence."
We also expanded our pool of affiliated experts. We strengthened our antitrust practice with the acquisition of Princeton Economics Group, which added University of Virginia Professor Kenneth Elzinga to our team of Senior Consultants. We also added two other world renowned experts, Professor Robert Daines of Stanford University, a corporate governance and finance expert, as well as Professor Tim Simcoe of Boston University, a patent and IP expert. In addition, we continued to work with and provide support for other world-class experts including Nobel Laureates Professors James Heckman and Robert Engle and Professors G. William Schwert, Gordon Klein, Roman Weil, Anthony Saunders, James Barth, and Scott Meadow.
Finally, we continued to expand in 2013 to better serve the needs of our clients. We now have 17 offices in seven countries and more than 400 professional staff, including more than 135 Ph.D. economists.
2012 Newsletter Summary
In recent years, we have begun this Newsletter by stating that the past year was our best year in our history. We are fortunate again to say that last year was no exception.
We continued to be hired in the highest percentage of the biggest, most complex cases and mergers around the globe. Reflecting the quality of our work on such matters, we swept every category in which we were nominated – six awards in total – at the 2012 Global Competition Review (GCR) awards, including Jorge Padilla, the head of Compass Lexecon Europe, being named the 2012 Economist of the Year. (In 2011, Janusz Ordover, a Senior Consultant and member of the Compass Lexecon Advisory Committee, won the same award.) Later in the year, in its review of the world’s leading economic consulting firms, GCR noted that Compass Lexecon “towers over its rivals.” In its review of Compass Lexecon, GCR highlighted our work on deals, such as AT&T/T-Mobile, Microsoft/Skype, Express Scripts/Medco, Deutsche Börse/NYSE, Google/Motorola Mobility, and Verizon’s acquisition of spectrum assets.
Our finance practice and general litigation practice enjoyed similar success. We have been immersed in major litigation including multiple matters arising out of the BP oil spill, various major RMBS and derivatives matters, disputes arising from the 9/11 terrorist attack on the World Trade Center, Madoff related litigation, criminal insider trading matters, multi-billion dollar fraudulent conveyance litigation, insurance/reinsurance disputes, and major intellectual property litigation, to name just a few examples. We also continue to be the firm of choice when testimonial experts are required in major litigation. Again this past year, our experts testified successfully at every stage of litigation in case after case as detailed below. And seven Compass Lexecon team members from three continents were recognized in a survey of general counsel and private practice lawyers globally as among the top international commercial arbitration experts in the world with quotes like “world class,” “untouchable on cross-examinations;” and having a “wealth of experience.”
We also continued to expand our pool of talented experts and staff, thereby strengthening our preeminent competition, finance, energy, intellectual property, international arbitration, and general litigation practices. We now have 14 offices in six countries and more than 375 professional staff, including more than 120 Ph.D. economists.
2011 Newsletter Summary
This past year was the best year in our history by a large margin. We continued to be hired in the highest percentage of the biggest, most complex cases and transactions around the globe ranging from the British Petroleum oil spill litigation to the proposed AT&T – T-Mobile merger (where Compass Lexecon experts were retained by both the Government and the private parties involved). Significantly, the most recent survey published by the Global Competition Review compared us to our competitors in the competition area and concluded that “Compass Lexecon continues to dwarf its rivals.” Also notable among the many victories our clients enjoyed in the past year, our President, Professor Daniel Fischel, testified successfully in four consecutive major trials/arbitrations.
We were also able to expand our pool of expert talent, as leading figures in economic consulting either joined us after government service or defected from other firms. Bradford Cornell, a professor at Cal Tech and an expert in valuation and financial markets (formerly with Charles River Associates), Jonathan Baker, a professor at American University and former Chief Economist at the FTC and FCC (affiliated with Charles River Associates before his government service), and Walter Torous, a professor at UCLA and an expert in mortgage-related securities and the Founding Director of the Ziman Center for Real Estate (formerly with Analysis Group), all joined us in the past year as did senior staff from Cornerstone Research and other firms.
We also expanded our geographic footprint when the leading European competition practice, led by Jorge Padilla, and the leading international arbitration group, led by Professor Pablo Spiller and Manuel Abdala elected to join us from LECG. We now have 14 offices in six countries and roughly 300 professional staff, including more than 120 PhD economists.
In 2011, we thus further strengthened our preeminent competition, finance, energy, intellectual property, international arbitration, and general litigation practices. We have developed cutting-edge expertise and experience in a range of areas, including credit markets, derivatives and credit default swaps, hedge funds, private equity, mortgage-backed securities, the use of innovative econometric techniques to analyze the competitive and synergistic effects of mergers, economic analysis of the requirements for class certification, sophisticated tests of the competitive effects and rationales of challenged business practices, and the determinants of energy prices.
2010 Newsletter Summary
Compass Lexecon had a very successful year in 2010. We added new affiliations with several world-class experts including Robert Engle (a professor of finance at NYU and the winner of the 2003 Nobel Prize in Economics), Allen Ferrell (a professor of finance at Harvard Law School), Douglas Lichtman (a professor at UCLA and a nationally recognized expert in intellectual property rights), and Scott Meadow (a professor of private equity and entrepreneurship at the University of Chicago). As a result, our preeminent competition, finance, energy, intellectual property, and general litigation practices are now stronger than ever. We have developed cutting-edge expertise and experience in a range of areas, including credit markets, derivatives and credit default swaps, hedge funds, private equity, the use of innovative econometric techniques to analyze the competitive and synergistic effects of mergers (in particular with regard to hospital and airline mergers), economic analysis of the requirements for class certification, sophisticated tests of the competitive effects and rationales of challenged business practices, and the determinants of energy prices.
2009 Newsletter Summary Volume 2
Compass Lexecon had a very successful year in 2009 notwithstanding the difficult economic environment. We opened new offices in New York and Century City and hired more than 20 new professionals. We also added several world-class experts including Ben Klein (formerly affiliated with LECG), Ken Lehn (formerly affiliated with Cornerstone), Atanu Saha (formerly affiliated with Alix Partners and Analysis Group), Mary Coleman (formerly affiliated with LECG), and David Mordecai (formerly working in the financial sector). And while we continue to be considerably (and intentionally) smaller than many of our competitors, we also continue to be retained and have success in a higher percentage than any other firm of the biggest and most complex cases and transactions as described more fully below. We are proud to present this summary of the 2009 highlights of our consulting practice.
2009 Newsletter Summary Volume 1
At the beginning of January, we celebrated the one-year anniversary of the creation of Compass Lexecon, which was formed by the merger of COMPASS and Lexecon. We are thrilled about our success over the past year; we have been fortunate to have been retained on many of the most prominent, challenging, and complex cases. In our June 2008 newsletter, we described many of these cases. Here, we highlight cases from the second half of 2008, which was just as eventful as the first half of the year.
2008 Newsletter Summary
After a period of active and successful collaboration between COMPASS and Lexecon, our two firms merged on January 1, 2008, creating Compass Lexecon. We now have offices in Chicago, Washington D.C., Cambridge, Los Angeles, San Francisco, Oakland, and Tucson. We also expect to open an office in New York in the near future.
Our preeminent competition, finance, energy and general litigation practices are now stronger than ever. We have developed cutting-edge expertise and extensive experience in a range of areas, including credit markets, derivatives and credit default swaps, private equity, the use of innovative econometric techniques to analyze the competitive and synergistic effects of mergers, economic analysis of the requirements for class certification, sophisticated tests of the competitive effects and rationales of challenged business practices, and the determinants of energy prices. We continue to be retained in a high percentage of the biggest and most complex cases and transactions. For example, Deal.com lists mergers that publicly received Second Requests from either the Department of Justice or Federal Trade Commission. A review of that list shows that Compass Lexecon experts are typically retained in close to 75 percent of these mergers. Because of our reputation for excellence and track record of success, we continue to attract and employ the most highly qualified professionals.