Compass Lexecon successfully testified in a precedent-setting case that the $85 billion vertical merger between AT&T and Time Warner would not lead to higher prices.
Situation
Compass Lexecon was retained by AT&T and Time Warner to provide economic analysis and expert testimony concerning the merger of the two companies, and to assist with the litigation brought by the U.S. Department of Justice to block the deal. This litigation was the first challenge of a vertical merger brought by the Department of Justice in decades and was closely followed by practitioners and the press as a critical precedent-setting case.
Impact
Judge Richard J. Leon ruled in favor of AT&T and Time Warner, permitting the merger to proceed without imposing conditions. Judge Leon’s opinion cited all of Compass Lexecon’s testifying experts, with Professor Carlton cited more than 50 times. Judge Leon agreed with Professor Carlton’s conclusion that “There’s absolutely no statistical basis to support the Government’s claim that vertical integration in this industry leads to higher content prices.”
Allan
Executive Vice President, Chicago
Q: What did it mean to you professionally to be part of a precedent-setting case?
A: “It was amazing. We were working with a large number of senior people from many different law firms, and everyone worked together so well. People pitched in to do whatever needed doing, both at Compass Lexecon and at the law firms. The time in the trenches really brought people together.”
Georgi
Senior Vice President, Washington, D.C.
Q: How did you support the clients on this case?
A: “We assisted the clients with the merger review process and subsequently with the litigation where Compass Lexecon’s experts testified. It was a great outcome. The main piece I worked on (econometric studies of past vertical integration events) went virtually undisputed by the government, underscoring the strength of our analyses.”
Margaret
Vice President, Chicago
Q: How did this case differ from others you have worked on?
A: “The scale of the case was unlike any other I have worked on. Clear communication and coordination across workstreams were key. The case also was one of the longest I have personally worked on. Over the course of the case, I developed friendships with colleagues I had never worked with prior.”