The parties settled, with the defendant agreeing not to claim that its brake rotors met OE standards.
In a false advertising case, a manufacturer and supplier of automotive brake rotors brought suit against a competitor alleging that the defendant made false or misleading statements about the quality of its product. The plaintiff asserted that the defendant claimed its brake rotors met or exceeded original equipment (OE) specifications when they did not. The plaintiff alleged that this enabled the defendant to gain market share from the plaintiff due to the lower cost of its lower-quality product.
Counsel for the plaintiff retained Cornerstone Research and a former FTC economist to analyze competition between premium and other rotors, examine market dynamics within the automotive parts manufacturing industry, and review databases of client sales to identify lost customers. The expert showed the impact of the defendant’s false claims and quantified the plaintiff’s damages.
The parties reached a settlement, with the defendant agreeing not to claim that its brake rotors met OE standards.