Compass Lexecon Client Chrysler Prevails at Trial in Dealer Discrimination Suit

Compass Lexecon Senior Consultant Dr. Glenn Woroch was retained by FCA US LLC (formerly known as Chrysler Group LLC) and their outside counsel, Colin Kass and Scott M. Abeles from Proskauer Rose LLP, to file an expert report and testify regarding a claim by one of Chrysler’s dealers that the automaker had violated the Robinson Patman Act in setting its dealer incentives. The case was heard in U.S. District Court for Northern California by Judge Beth Labson Freeman.

At trial Dr. Woroch successfully argued that the Plaintiff’s incentives were “economically attainable” if the Plaintiff had continued to price rationally. Further, Dr. Woroch established that the pass-through of the dealer incentives to purchasers would not be large enough to impair the Plaintiff’s ability to compete even if the incentives were functionally unavailable.

After less than a day of deliberation, the jury ruled that the incentives were functionally available to the Plaintiff, delivering a complete victory for Chrysler. Dr. Woroch was supported by Todd Bettisworth from the Compass Lexecon’s Oakland office.