Consumer Fraud and Product Liability
Cornerstone Research staff and experts have experience in both class actions and individual matters involving allegations of consumer fraud; product liability, misrepresentation, and defects; false advertising; disclosure practices; and privacy.
Consumer Fraud and Product Liability Capabilities
Cornerstone Research has addressed issues of certification, exposure, reliance, impact, and damages in class actions. Key questions in these cases may include whether common evidence can prove that certain challenged conduct caused each member of the proposed class to make a purchase and whether the challenged conduct injured each member of the proposed class. An additional consideration is whether each proposed class member’s damages, if any, can be determined by common proof. We have worked on class actions involving allegations of:
Class certification in these cases frequently turns on the particulars of the challenged conduct, the overall structure of the industry and the market, and the characteristics of individual transactions. We evaluate these issues through empirical research within a framework of sound economic concepts.
Individual actions involving allegations of fraud and misrepresentation are often brought by a defendant’s competitors. These cases may require a focus on the relevant market, quantification of the effect of the challenged conduct on demand and prices for competing products, and estimation of damages suffered by competitors due to the defendant’s alleged fraud or misrepresentation.
In addition to lost sales and price erosion, some plaintiffs may also seek reputational damages and punitive damages. We have substantial experience analyzing these specific types of claims, applying our expertise in economics, marketing, finance, econometrics, and accounting.
Our experience in individual actions includes allegations of fraud and misrepresentation in matters involving a broad array of industries and consumer products.
Survey and Sampling Design
Cornerstone Research staff and experts have significant experience in survey design, including analyzing and implementing reliable sampling techniques. We regularly conduct and critique surveys of market participants to assess consumer behavior, attitudes, and preferences, and to address issues relating to exposure, reliance, and materiality. In some cases, we supplemented these empirical findings with analysis of data originally collected over the course of business as well as from publicly available data sources.
Statistical and Econometric Analysis
Cornerstone Research regularly formulates and implements empirical analyses to respond to economic and financial issues. We have specialized staff with expertise in advanced modeling and statistical techniques, including difference-in-differences, hedonic regression, and synthetic control methods, among others. We frequently use real-world, large datasets with sophisticated statistical and econometric methods.
We have experience working with experts to develop and implement rigorous, state-of-the-art content analysis techniques—including artificial intelligence and machine learning—to assess marketing messages (such as advertisements), social media and user-generated online content, and other content involving extensive textual data, such as public press spanning many years.
Conjoint analysis is a survey-based marketing research tool developed by academics to understand and estimate consumer preferences. It has been adopted by businesses and industry practitioners to help make decisions on new product development and market segmentation analysis, among other uses. Over the last several years, conjoint analysis has been increasingly proposed as a method to estimate class-wide damages in a variety of consumer class actions including product liability, false advertising, product labeling, and data privacy and data breach matters. However, the technique’s underlying assumptions and limitations render it unsuitable for calculating damages in a class action setting.
Food, Beverage, and Dietary Supplements
Life Sciences and Healthcare
Other Consumer Products