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Gordon Rausser recently became the subject of controversy in connection with his role as the Plaintiffs' economics expert in In re: Rail Freight Fuel Surcharge Antitrust Litigation ("Rails"), a class action pending in the District Court for the District of Columbia. The defendants alleged that he was a part owner of a company that purchases claims from class members in pending class actions, and that he had a financial stake in the outcome of the Rails case itself.
These assertions were untrue. They turned out to have been based on a secret letter sent to the defendants' counsel by an employee of the company of which Dr. Rausser was supposedly a part owner, and for which Dr. Rausser had performed consulting work. The employee was misinformed. He was, as it turns out, also pursuing a substantial claim against the company, which he acknowledges prompted him to write the letter.