A national hospital chain retained a CRA expert to evaluate class certification, causation, and damages claims in a RICO action alleging “turbocharging” (i.e., inflating reported costs, thereby increasing Medicare payments to the detriment of other hospitals). After analyzing Medicare billing data and cost reports to expose errors in the plaintiffs’ damages model, CRA’s expert testimony illustrated that some class members would collect damages despite engaging in the same behavior alleged by the plaintiff. The court ultimately denied class certification and granted the defendant’s motion for summary judgment.
New research on the use of conjoint surveys with market simulation analysis for damages estimation in consumer protection class action litigation
Market simulations that we have seen used in consumer protection class action litigation apply what is known as the static Nash Bertrand model of competition...