EI News and Notes

Verdi Valley Medical Center Wins Summary Judgment

Barry C. Harris, Principal and Board Chairman of Economists Incorporated (EI), was the expert economist and testified at deposition on behalf of defendant Verdi Valley Medical Center. Plaintiffs alleged that the defendants engaged in a variety of anticompetitive actions to eliminate competition for cardiology services in the Verdi Valley area of Arizona. Dr. Harris’s analysis showed that competition had not been eliminated and that the appropriate antitrust geographic market was broader than the Verdi Valley area. Defendants won on summary judgment. The defendants were represented by David Ettinger of Honigman Miller Schwartz & Cohn LLP. Dr. Harris was assisted by EI Corporate Vice President David Argue.

Gannett Wins Injunction.

Gannett Co., Inc. and Lee Enterprises, Inc. published the Tucson Citizen and the Arizona Daily Star newspapers as part of a joint operating agreement. When Gannett announced that it would discontinue printing the Citizen, the Arizona Attorney General asked a Federal Court for an injunction to require continued publication. EI Senior Vice President Kent Mikkelsen submitted a declaration showing that the Citizen cost more to produce than the incremental revenue it brought in. The court found that the Citizen would qualify under the failing company test and denied the injunction. The Attorney General subsequently withdrew the suit. Gannett and Lee were represented by Nixon Peabody and K&L Gates, respectively.

Raytheon Wins in Defamation Trial.

EI Vice President Laura A. Malowane testified before the Fairfax Circuit Court of Virginia on behalf of defendants Raytheon Company, et al. Her testimony concerned damages stemming from alleged defamation of a former employee. Plaintiff claimed the defamation resulted in her termination and caused her $6.5 million in damages. Dr. Malowane showed that the plaintiff suffered no economic damages. The jury found for the defendants. The defendants were represented by Hunton & Williams and Willkie Farr & Gallagher. Dr. Malowane was assisted by EI Senior Vice President Jeffry Davis and Senior Economist Allison Holt..