Major firms in the international offshore drilling industry were accused of fixing wages and other compensation for their offshore employees in violation of Section 1 of the Sherman Act.
Major firms in the international offshore drilling industry were accused of fixing wages and other compensation for their offshore employees in violation of Section 1 of the Sherman Act. Plaintiffs, together with their economics experts, proposed to certify a broad class of tens of thousands of workers. In response, the defendants jointly retained two experts, Professor William Baumol of New York University and Dr. Michael Keeley of Cornerstone Research, to analyze class certification issues.
In total, these settlements amounted to only a small percentage of plaintiffs’ original, multibillion-dollar damages claim.
Working closely with Cornerstone Research staff, Professor Baumol and Dr. Keeley analyzed voluminous data on wages and benefits over time, for each type of offshore drilling job and each defendant firm. Their reports showed that the impact of the alleged conspiracy, if any, would need to be analyzed on an individual basis. They also showed that for multiple reasons, many class members would not have sustained any damages even if plaintiffs’ allegations were true.
Plaintiffs and all but one of the defendants reached a series of settlements prior to the hearing on class certification. In total, these settlements amounted to only a small percentage of plaintiffs’ original, multibillion- dollar damages claim.