Automotive and Related Industries

Counsel for global automobile manufacturers have retained Cornerstone Research in high-profile class actions, commercial disputes, and regulatory investigations.

Counsel for leading automobile manufacturers such as General Motors, Ford, Toyota, Fiat Chrysler, Honda, Volkswagen, Daimler/Mercedes Benz, and others turn to Cornerstone Research for economic and financial analysis in all phases of commercial litigation and regulatory proceedings. We have also worked on matters involving parts suppliers, dealers, insurers, and transportation service providers. Clients rely on our deep knowledge of industry economics, marketing, finance, and capital markets, as well as our experience in competition, consumer, product liability, securities, and other matters.

Economics Capabilities

Consumer Fraud and Product Liability

We have provided consulting and testifying expert support in major product liability cases in the automotive industry. We have experience addressing economic, marketing, and consumer behavior issues in matters involving alleged vehicle safety defects as well as false advertising claims. In addition to our experience in automobile cases, we have provided expert analyses in multiple matters involving all-terrain vehicles, recreational vehicles, and heavy-duty trucks.

Our in-depth knowledge of the industry’s structure, distribution channels, and pricing models—as well as issues related to new automotive technologies—informs our use of sophisticated economic and marketing tools. This expertise enables us to evaluate a variety of consumer claims, including overpayment or diminished resale value, and effectively rebut opposing arguments and proposed methodologies.

We work on cases filed in both federal and state courts, as well as government investigations. Our support extends through all phases of litigation, including class certification, merit inquiries, and Daubert motions. We also assist clients with settlement analyses.

In addition, our experts have experience with consumer finance issues, including cases involving automotive loan terms, securitization, and discrimination.

Antitrust and Competition

Cornerstone Research consults to clients in the automotive and transportation sectors on litigation matters related to alleged price fixing, tying, price discrimination, and other areas. We also have experience with regulatory reviews of proposed mergers. Our extensive experience working with automotive clients and our deep understanding of the relevant industry data sources allow us to effectively and efficiently address the economic issues in these matters.

Economic Analyses of Market Data

A central question in consumer class actions is whether, or to what extent, prices would be different absent an alleged defect or misrepresentation. Our expertise with key automotive databases and knowledge of academic and industry research enables us to analyze market outcomes and identify the economic factors that drive supply and demand in the automotive and transportation sectors.

During class certification, our experts focus on the extent of heterogeneity in transaction prices among consumers, and evaluate whether proposed methods can reliably estimate impact and damages on a classwide basis. In addition, we test whether the alleged defects or misrepresentations caused an economic loss.

Marketing and Consumer Behavior

We employ a variety of marketing research techniques and consumer behavior analyses, including surveys, conjoint surveys, and content analysis, to examine the factors that impact purchasing behavior and decisions in automotive matters.

For example, our experts conduct surveys to assess whether consumers were exposed to alleged misrepresentations, and how their perceptions and decisions may have been affected either by such exposure or by disclosure of allegedly omitted information. Our experts also often evaluate surveys conducted by opposing parties and have demonstrated design and execution flaws that led to inflated or unreliable results. We also examine third-party data, such as surveys commissioned by original equipment manufacturers (OEMs), industry studies, and product reviews to corroborate any findings regarding consumer purchasing behavior.

We have extensive expertise with conjoint surveys, which are often proposed or conducted by class action plaintiffs seeking to estimate alleged damages in automotive cases. In several automotive cases, our experts successfully rebutted Plaintiffs’ conjoint surveys, demonstrating that such methodologies were not suitable for measuring damages on a class-wide basis.

Our marketing experts are often called upon to analyze advertising or other public media content to understand consumers’ exposure to allegedly false advertising, as well as the potential impact of advertising on consumer purchase decisions.

Finance Capabilities

Securities, Restructuring, and Financing

Cornerstone Research consults to clients in the automotive and transportation sectors on matters related to securities fraud allegations, bankruptcy proceedings, corporate transactions, and consumer finance. To address the economic issues raised in these complex cases, our experts bring specialized knowledge of financial markets and instruments, valuation techniques, and accounting practices.

Shareholder Litigation and Regulatory Investigations

Cornerstone Research and our affiliated experts have decades of experience in securities fraud class actions and regulatory investigations, both for OEM clients and other companies in the automotive sector. Such cases frequently arise when investors, regulators, or pension fund participants allege misrepresentations or omissions in disclosures. We have also worked on matters involving financial shortfalls and securities market price fluctuations that allegedly stem from consumer fraud and product liability claims.

Cornerstone Research and our affiliated experts have decades of experience in securities fraud class actions and regulatory investigations, both for OEM clients and other companies in the automotive sector. Such cases frequently arise when investors, regulators, or pension fund participants allege misrepresentations or omissions in disclosures. We have also worked on matters involving financial shortfalls and securities market price fluctuations that allegedly stem from consumer fraud and product liability claims.

We combine our expertise in equity, debt, and derivative securities with knowledge of auto industry accounting and reporting conventions. We have worked extensively with counsel in preparing and responding to motions related to dismissal, class certification, merits, summary judgment, and Daubert challenges.

Cornerstone Research staff and experts possess a multifaceted understanding of the market structure issues that foreign and multinational automotive firms face, particularly those whose securities trade in the United States. We have assessed market efficiency, security price impact, economic materiality, and damages in these contexts.

Corporate Transactions, Valuation, and Bankruptcy

Cornerstone Research brings expertise in valuation, financing, and executive or insider compensation to cases arising from buyouts, mergers and acquisitions, attempted takeovers, and other corporate transactions.

Company and asset valuations play vital roles in bankruptcy, financial distress, solvency, and restructuring disputes. In these matters, our experts have analyzed relevant economic drivers of performance and their implications for firm or asset value. In corporate transaction disputes, we have assessed financing options, security trading dynamics, and market microstructure issues.