Ninth Circuit Affirms Denial of Class Certification Based on Failure to Provide Sufficient Damages Model—Or Any Damages Model at All

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On November 13, the Ninth Circuit affirmed the Northern District of California’s denial of class certification in an action against Apple, Inc., holding that the plaintiffs’ expert’s wait-and-see approach to calculating the class’s alleged harm did not pass muster under the Supreme Court’s decision in Comcast Corp. v. Behrend, 569 U.S. 27 (2013).

  • Plaintiffs alleged that Apple violated the Sherman Act “by conspiring with AT&T Mobility LLC to monopolize the aftermarket for iPhone wireless service.”
  • With their motion for class certification, plaintiffs submitted a declaration from an economist, who stated that he “did not expect to encounter any insurmountable difficulty” in developing a workable damages model under two alleged theories of impact.
  • The Northern District of California denied class certification, finding that Plaintiffs had failed to provide a sufficient method for determining classwide damages. Plaintiffs appealed the district court’s decision, arguing that the court did not conduct the required “rigorous analysis” when making this finding.
  • The Ninth Circuit affirmed, holding “[t]he plaintiffs here have done even less than the Comcast plaintiffs: Instead of providing an imperfect model, they have provided only a promise of a model to come.”
  • The decision serves as a reminder that a party must “satisfy through evidentiary proof” the requirements of Rule 23(b) before a class can be certified, and that a plaintiff cannot sidestep potential Comcast problems by waiting until trial to present a viable damages model.

The case is Ward et al. v. Apple, Inc. Read the decision here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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