Analysis of ability to pay price fixing fines

Analysis of ability to pay price fixing fines

Mark E. Zmijewski, Keith A. Bockus
Forensic Accounting & Investigation | Antitrust & Competition | United States Antitrust | Regulatory Economics & Compliance

When a global shipping company and two airlines received a government fine due to alleged price fixing claims, they hired a CRA expert to assess their ability to pay the fines. CRA’s expert prepared a detailed and comprehensive analysis of the company’s historical performance, their projected performance, industry trends, and competitor performance. The expert also performed a statistical analysis of the company’s projected credit rating and analyzed the likelihood that the fine would cause bankruptcy. The analysis of CRA’s expert was presented to the US Department of Justice, and it resulted in reduced fines for each of the clients.