Retained by WilmerHale
The Vega team was retained by a national bank through its counsel WilmerHale to analyze the class issues and damages methodology in a class action brought by consumers who alleged that the bank systematically violated the Bankruptcy Code by failing to inform credit agencies when certain debts owed to the bank had been discharged in Chapter 7 bankruptcy proceedings. Plaintiffs claim that this policy adversely affected the ability of class members to obtain credit and employment.
Key analyses conducted by the Vega team include:
- Analysis of plaintiff expert’s calculation of FICO scores for class members
- Analysis of the validity of plaintiff expert’s assumption that borrowing behaviors are similar across FICO score groups
- Analysis of whether certain borrowers benefitted from derogatory information in their credit files
- Analysis of whether the determination of interest rates is reliable and accurate
Additionally, the Vega team determined that the opposing expert had made numerous errors; he had neglected to account for the benefits that had occurred due to the extraneous information and had oversimplified and made errors in his calculations of interest rates. Throughout, the Vega team relied on accepted literature and statistical techniques to identify methodological weaknesses in the damages calculation.
The case settled.