Comcast Corp. v. Behrend

2013-03-27
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Headline: Court blocks certification of a 2‑million-customer class against a cable company, ruling that plaintiffs’ damages model must tie price harms to the specific theory of antitrust injury.

Holding: The Court reversed class certification, holding that a classwide damages model must measure damages tied to the single theory of antitrust harm accepted for class treatment, and the plaintiffs' model failed that test.

Real World Impact:
  • Makes it harder to certify large consumer classes without damages tied to the accepted theory.
  • Requires plaintiffs’ damages models to isolate harm from the specific theory accepted for class treatment.
  • Reverses certification of a class involving about two million cable subscribers.
Topics: class actions, antitrust, consumer prices, cable company mergers

Summary

Background

Comcast and its subsidiaries operated cable service in a Philadelphia-area region made up of multiple counties. Current and former subscribers sued, saying Comcast’s “clustering” deals—buying and swapping cable systems—reduced competition and raised prices. The plaintiffs sought to certify a class of more than two million subscribers under the federal class-action rule that requires common questions to predominate. The District Court accepted only one theory of classwide injury (that clustering deterred new cable “overbuilders”) and certified the class after relying on an expert’s regression model that calculated about $875 million in total damages.

Reasoning

The Court considered whether the class could be certified when the plaintiffs’ damages model did not isolate damages from the single theory the District Court allowed. The Court said a court deciding certification must probe the evidence and ensure that damages are measurable on a classwide basis under the accepted theory. Because the expert’s model assumed multiple different theories of harm and did not attribute damages specifically to overbuilder deterrence, it failed to show damages were capable of classwide measurement. For that reason the Court reversed the Court of Appeals and held the class certification improper.

Real world impact

The ruling removes class status in this case and requires plaintiffs in similar suits to present a damages method linked to the specific theory of harm accepted for class treatment. The decision does not decide whether Comcast ultimately violated antitrust law on the merits; plaintiffs may pursue individual claims, revise their methodology, or seek narrower class procedures.

Dissents or concurrances

Justices in dissent argued the Court took up the wrong question, should have left the lower courts’ factual findings intact, and that individualized damages do not automatically defeat class certification.

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