Home Improvement Product Manufacturer Advertising

In a nationwide class action, counsel for the manufacturer retained a Cornerstone Research expert to estimate potential damages.

In a nationwide class action against a leading manufacturer of a home improvement product, the plaintiffs alleged that the product did not perform as promised, deteriorated more quickly than advertised, and required removal or replacement with an alternative product. Counsel for the manufacturer retained Dr. Samid Hussain, a vice president of Cornerstone Research, to estimate the potential damages faced by the manufacturer.

Dr. Hussain’s estimated potential damages for several scenarios.

Dr. Hussain analyzed product sales and complaints, as well as refunds and replacements to consumers who had complained. Using this data, he estimated the complaint rate and the rate at which the manufacturer had provided refunds or replacements products.

Dr. Hussain also estimated potential damages for several scenarios under which the putative class members could claim damages. These scenarios allowed the manufacturer to gauge the range of possible total damages and use them in settlement negotiations.