Edgeworth Economics LLC

COMPLEX PROBLEMS.CLEAR SOLUTIONS.

Copyright © 2016

By Edgeworth Economics

All Rights Reserved

www.edgewortheconomics.com

EDGEWORTH ECONOMICS

Edgeworth Economics provides economic, statistical, and quantitative analysis and

testimony with a level of expertise and service that few others can match. This is why

we were chosen to work on behalf of AstraZeneca, Bank of America, Bloomberg,

CSX, Comcast, Google, Hershey, Intel, JP Morgan Chase, Mars, Qualcomm, Samsung,

and many other leading organizations.

OUR EXPERTSAt Edgeworth, our expert economists, statisticians, and business and human resources

professionals are known for their technical acumen and their ability to explain complex

topics clearly. Our experts have testified and consulted in numerous landmark cases, are

nationally recognized for their expertise and insight, and have consulted for Fortune 500

companies on a diverse array of business and litigation matters.

WE OFFER EXPERT TESTIMONY AND CONSULTING

IN A VARIETY OF PRACTICE AREAS, INCLUDING

ANTITRUST, PRIVACY & DATA SECURITY,

CLASS ACTIONS, HUMAN RESOURCES ANALYTICS,

FALSE ADVERTISING, INTELLECTUAL PROPERTY,

TRANSFER PRICING, AND

LABOR AND EMPLOYMENT.

IN THE MATTER OF MCWANE INC AND STAR PIPE PRODUCTS The Federal Trade Commission charged that the McWane Inc, Star Pipe Products LTD, and Sigma Corporation conspired to set and maintain prices for pipe fittings. In addition, they charged that McWane illegally maintained its monopoly power in the market for U.S.-made pipe fittings by implementing an exclusive dealing policy.

Dr. Parker Normann was retained by McWane to testify in an administrative trial on the economic merits of the FTC’s claims. The Administrative Law Judge dismissed the conspiracy allegations, citing in part that “Dr. Normann’s findings, conclusions, and opinions regarding price movements in the fittings market during 2008 constitute substantial, probative, economic evidence that is not consistent with… a conspiracy....”

Subsequently, the FTC dismissed six of its seven counts involving conspiracy, restraint of trade, and monopolization.

EDGEWORTH WAS NAMED ON GCR’S “ECONOMICS 21” LIST OF TOP COMPETITION ECONOMICS FIRMS IN 2015.

SPOTLIGHT ON MERGERSDrs. Fei Deng and Gregory K. Leonard were retained by China’s Anti-Monopoly Bureau of the Ministry of Commerce (MOFCOM) as outside experts in its review of the Thermo Fisher/Life Technologies merger. Drs. Deng and Leonard worked directly with the MOFCOM case team and performed a variety of tasks including analyzing market definition and competitive effects using both qualitative and quantitative approaches and preparing and delivering analyses and recommendations to MOFCOM.

Their analyses helped MOFCOM quickly narrow the inquiry, and MOFCOM approved the deal with conditions on a limited set of products after four-and-a-half months of extended review.

IN RE WHOLESALE GROCERY PRODUCTS ANTITRUST LITIGATIONC&S and SuperValu are two of the largest grocery wholesalers in the United States. The plaintiffs — retail grocers — alleged that C&S and SuperValu conspired by way of a 2003 Asset Exchange Agreement (the “AEA”) and ancillary non-competition covenants to allocate territories and customers. Plaintiffs claimed they were charged supra-competitive prices for wholesale grocery products and services as a result of the alleged conspiracy.

Dr. John Johnson, working with Dr. Parker Normann and Mr. Matthew Milner, demonstrated the invalidity of the plaintiffs’ assumption of class-wide impact by presenting analyses of actual transaction prices and pricing negotiations between the defendants and retailers. Judge Anne D. Montgomery found that none of plaintiffs’ proposed methods for establishing class-wide impact was capable of doing so.

ANTITRUST

SPOTLIGHT ON VALUATIONEdgeworth Economics regularly performs valuations of companies and their intellectual property assets in a variety of contexts including M&A, PE financing, litigation, arbitration and licensing negotiations. Mr. Stephen P. Rusek, MBA and CFA, has performed valuations for clients in numerous industries including consumer products, financial services, software, semiconductors, medical devices and biotechnology / pharmaceuticals. Mr. Rusek’s analyses are critical inputs used by his clients to identify business opportunities and evaluate key strategic decisions.

EVALUATING RAND OBLIGATIONS FOR STANDARD ESSENTIAL PATENTSEdgeworth economists have provided their expertise in numerous high-profile cases involving “reasonable and non-discriminatory,” or RAND, obligations for patents that are essential to standards such as Wi-Fi and LTE. Dr. Mario A. Lopez has assisted clients in determining RAND royalties in litigation and mediations contexts, as well as assessing other aspects of patent holders’ RAND obligations, including the reasonableness of initial negotiation offers and provisions of proposed RAND licenses.

JURY AWARDS PATENT

DAMAGES BASED ENTIRELY ON EDGEWORTH’S CALCULATION OF DAMAGES Edgeworth was retained by plaintiff, Edwards Lifesciences, to calculate damages from the alleged infringement by Medtronic of Edwards Lifesciences’ U.S. Patent No. 8,002,825, which relates to fundamental technology covering transcatheter aortic valve replacement (“TAVR”) devices. Both Edwards Lifesciences and Medtronic manufacture and sell TAVR devices worldwide that are used to treat aortic stenosis, which is a condition traditionally treated using open heart surgery. With the development of TAVR devices that can be implanted in a less invasive manner, a wider set of patients suffering from aortic stenosis can be treated and the prognosis for these patients is greatly improved.

Edgeworth’s calculation of damages included both a lost profits and reasonable royalty analysis. The methodology implemented by Edgeworth to calculate lost profits damages was based on an analysis of the competition between Edwards Lifesciences and Medtronic in each of the relevant geographic markets that explicitly accounted for the differences in product features between their respective TAVR products. The methodology employed to calculate reasonable royalty damages was based on an analysis of Medtronic’s maximum willingness to pay for a license to the patent-in-suit, which also accounts for its next-best, non-infringing alternative, and Edwards’ minimum willingness to accept for granting a license to the patent-in-suit.

At trial, Dr. Gregory K. Leonard, presented to the jury the methodology and conclusions of Edgeworth’s damages analysis. Ultimately, the jury awarded the exact damages figure calculated by Edgeworth.

INTELLECTUAL PROPERTY

EMPLOYMENT LAW DISCRIMINATION CASESEEOC v. JP Morgan Chase Bank, N.A.The Equal Employment Opportunity Commission alleged that JP Morgan Chase managers at a mortgage call center engaged in a pattern or practice of unlawful employment practices, including channeling more lucrative calls to certain male employees, and less lucrative calls to female employees.

Dr. John Johnson, working with Mr. Chuck Fields and Mr. Michael Kheyfets, was retained by JP Morgan and used the available data to demonstrate that the allegations made by the EEOC were belied by the data. Dr. Johnson further demonstrated that the opposing expert had ignored underlying correlation in the data and had therefore incorrectly performed his statistical analyses. The case settled.

EEOC v. Bloomberg L.P.The Equal Employment Opportunity Commission alleged that Bloomberg L.P. engaged in a pattern or practice of unlawful employ-ment practices, including discriminating against claimants based on gender and pregnancy.

Working with Dr. Jesse David, Mr. Matthew Milner, and Mr. Chuck Fields, Dr. John Johnson provided testimony demonstrating that the compensation of alleged class members actually increased more than the compensation of employees who took leave for other reasons. When the judge decided to grant summary judgment on behalf of Bloomberg L.P., she cited Dr. Johnson’s statistical evidence, which she referred to as “highly probative and uncontroverted.”

EDGEWORTH FREQUENTLY WORKS ON CLASS CERTIFICATION MATTERS INVOLVING WAGE AND HOUR CLAIMS AT BOTH THE FEDERAL AND STATE LEVELS.

LABOR & EMPLOYMENT

PRIVACY & DATA SECURITYPartners Dr. John Johnson, Mr. Matthew Milner, and Mr. Michael Kheyfets have extensive experience working with multinational companies and voluminous transactional point-of-sale data maintained across disparate systems, retail locations, geographic regions, and subsidiaries.

When a breach occurs, our data experts are positioned to assist our clients by determining potential exposure. Expert economic analysis can provide answers to difficult questions that arise in data breach class actions, FTC investigations, or other types of private litigation. Applying rigorous economic and statistical analysis to large and complex data sets, our experts assist clients with answering questions that are fundamental to assessing whether actual harm or injury occurred from a data breach, determining exposure, and assessing damages.

SPOTLIGHT ON DATA ANALYTICSAs the amount of data that companies keep has grown, so has the need to turn this data into actionable insights. Edgeworth’s data analytics experts, Mr. Michael Kheyfets and Mr. Matthew Milner, have worked across industries and data platforms to advise clients on how to get the most out of their data.

Whether constructing complex data sets, developing and validating forecasting models, or designing metrics to assess the nature of competition in a specific industry, Edgeworth experts apply rigorous statistical and economic tools to help clients get strategic information out of data.

DIVERSITY CONSULTINGEdgeworth Economics often partners with clients on measuring and analyzing their diversity and inclusion initiatives. Mr. Chuck Fields, an expert on human resources and employment matters, draws upon his experience as a former human resources leader at a Fortune 100 government contractor to lead our labor and employment consulting group in these matters.

Whether it’s helping clients develop a strategic plan to track diversity and inclusion, or working with contractors facing OFCCP audits, Edgeworth brings a unique perspective that combines practical know-how with rigorous statistical methods.

CONSULTING

TRANSFER PRICING

TRANSFER PRICINGEdgeworth’s transfer pricing practice provides rigorous, thoughtful analysis for international law firms and multinational clients. In particular, Edgeworth’s strengths in intellectual property economics and valuation allows us to bring sophisticated analysis and techniques to bear in finding practical solutions to challenging tax problems involving intangible property. Most importantly, we deliver our results in a simple, straightforward manner that allows clients to easily understand and implement solutions. Our work includes:

• Tax planning• Corporate restructuring• Documentation• Dispute resolution

Dr. George Korenko led a team of transfer pricing experts and researchers from Edgeworth and ALM Legal Intelligence to create a transfer pricing report based on survey results from practitioners around the U.S. The report illuminates key issues in transfer pricing for intangibles and provides insight on how practitioners are implementing their transfer pricing strategies. Dr. Korenko presented the report to the transfer pricing community at a conference hosted by Edgeworth Economics.

Recent Participation in Emerging Issues DiscussionsDr. Korenko also worked closely with a distinguished set of transfer pricing professionals to submit comments to the OECD in response to the Public Discussion Draft, BEPS Actions 8, 9, and 10: Discussion Draft on Revisions to Chapter I of the Transfer Pricing Guidelines (Including Risk, Recharacterisation, and Special Measures). Dr. Korenko also participated in a panel that provided comments on this discussion draft at the American Bar Association Section of Taxation meetings in January 2015.

REPORT HIGHLIGHTS 2014 Transfer Pricing: Intangible Property, Tangible ProfitsHas the OECD’s focus on providing returns based on control of the development/use/protection of intangibles caused your law firm to make changes in your recommendations regarding clients?

Do you recommend your clients review or plan to review existing tax arrangements to shift “substance” (e.g., control of development, maintenance, and protection of the IP) in response to the OECD’s recent Base Erosion and Profit Shifting Action Plan and Revised Discussion Draft on Transfer Pricing Aspects of Intangibles?”

Do you currently recommend that your clients locate functions as-sociated with managerial control of the development/use/protection of intangibles with the entity that legally owns and funds the develop-ment/use/protection?

Which of the following statements best characterizes your preferred approach to transfer pricing for intangible assets?

PRO BONO

We are honored to be among those corporations who dedicate

professional service to helping others, working closely with

non-profit entities such as Appleseed Network and DC Legal

Aid. Many Edgeworth employees volunteer their professional

talents to fundamental community issues such as promoting

adequate nutrition for school children, supporting single

mothers in need of child support, and resolving inadequate

responses to elder abuse.

EDGEWORTH HAS BEEN

REPEATEDLY RECOGNIZED

FOR THE COMPANY’S

DEDICATION TO PRO BONO

MATTERS.

WE EXCEEDED OUR PLEDGE OF 1,200 PRO BONO SERVICE HOURS TO THE A BILLION + CHANGE CAMPAIGN.We are humbled to have been selected to be a part of A Billion + Change’s volunteerism guide, “Small Business, Big Purpose.” This eBook showcases Edgeworth’s pro bono-based company culture and highlights recent pro bono case work and experiences.

PRO BONO

PURPOSEOur guiding principles are inspired by the 19th century economist, Francis Edgeworth, who created the ‘Edgeworth Box,’ which demonstrates those exchanges between two individuals that make both better off without making either worse off.

At Edgeworth Economics, this theory has steered our decisions from the beginning – a belief in a company culture where clients can be served and a work environment can be created in which everyone flourishes by putting the needs of the client and the firm above those of any single individual.

We have built a firm that delivers high-caliber results to our clients, directly from our experts.

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www.edgewortheconomics.com