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In re Rail Freight Fuel Surcharge Antitrust Litig.

United States District Court for the District of Columbia

October 10, 2017, Decided

MDL Docket No. 1869; Miscellaneous No. 07-0489 (PLF)

Opinion

 [*30]  TABLE OF CONTENTS

PART ONE: INTRODUCTION AND BACKGROUND

I. INTRODUCTION

II. BACKGROUND

A. The Alleged Conspiracy

B. Appeal to the D.C. Circuit

C. Class Certification Papers and Supplemental Briefing Before the Class

Certification Hearing

D. [**17]  Supplemental Expert Reports

PART TWO: ADMISSIBILITY OF EXPERT TESTIMONY UNDER DAUBERT

I. INTRODUCTION

II. EXPERT TESTIMONY AT CLASS CERTIFICATION

A. Rule 702 of the Federal Rules of Evidence

B. Daubert Test Versus Rule 23(b) Reliability Standard

III. DAUBERT ANALYSIS OF THE EXPERTS IN THIS CASE

A. Dr. Gordon Rausser

1. Dr. Rausser's Credibility in Light of his Involvement with Cascade

Settlement Services

a. Factual Background Regarding Dr. Rausser and Cascade

b. Court's Conclusions Regarding Dr. Rausser's Credibility in the

Daubert Context

2. Rule 702 Analysis of Dr. Rausser's Expert Opinion

a. Introduction

b. Qualitative Economic Analysis

c. Documentary Record and Defendants' Transaction Data as

Evidence of Class-wide Impact

d. Common Factors Model

e. Damages Model

f. Legacy Contracts

B. Dr. Joseph P. Kalt

1. Aggressiveness and Coverage of Fuel Surcharges

a. Earning Power

b. Coverage: Application, Negotiation, and Discounting of Fuel

Surcharges

2. False Positives

a. Variable Fuel Coefficient

b. Legacy False Positives

c. Rates Equal to Variable Costs

d. Pre-Class Period Fuel Surcharges

3. Structural Break Analysis

4. Ordinary Fuel Cost Recovery

5. Uninjured Class Members

C. Dr. Jeffrey J. Leitzinger

1. Dr. Rausser's [**18]  Research Methodology, Analysis, and Model Design

2. Constant Fuel Coefficient: Margin Compression and Fuel Price Hedging

3. Constant Fuel Coefficient: Box-Cox Sensitivity Analysis

4. Annual Fuel Shares

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292 F. Supp. 3d 14 *; 2017 U.S. Dist. LEXIS 187401 **; 99 Fed. R. Serv. 3d (Callaghan) 223; 2017-2 Trade Cas. (CCH) P80,192; 2017 WL 5311533

In re RAIL FREIGHT FUEL SURCHARGE ANTITRUST LITIGATION. This document relates to: ALL DIRECT PURCHASER CASES

Subsequent History: Petition granted by, Without prejudice In re: Rail Freight Fuel Surcharge Antitrust Litig. - MDL No. 1869, 2017 U.S. App. LEXIS 25921 (D.C. Cir., Dec. 20, 2017)

Affirmed by Dakota Granite Co. v. BNSF Ry. (In re Rail Freight Fuel Surcharge Antitrust, Litig. - MDL No. 1869), 2019 U.S. App. LEXIS 24435 (D.C. Cir., Aug. 16, 2019)

Affirmed by In re Rail Freight Fuel Surcharge Antitrust Litig. - MDL No. 1869, 934 F.3d 619, 2019 U.S. App. LEXIS 26371 (D.C. Cir., Aug. 16, 2019)

Later proceeding at Rail Freight Fuel Surcharge Antitrust Litig., 2019 U.S. Dist. LEXIS 211449 (D.D.C., Dec. 9, 2019)

Prior History: In re Rail Freight Fuel Surcharge Antitrust Litig., 2016 U.S. Dist. LEXIS 66526 (D.D.C., May 20, 2016)

CORE TERMS

fuel, surcharge, shippers, damages, class certification, class period, overcharges, legacy, shipments, variable, defendants', pre-class, prices, alleged conspiracy, reliability, uninjured, class member, plaintiffs', costs, Merits, Reply, elasticity, conspiracy, predominance, coefficient, intermodal, formulas, rates, contracts, constant