Dexon Computer Inc. v. Cisco Systems, Inc. and CDW Corporation

Analysis Group was retained on behalf of Cisco Systems and CDW Corporation, defendants in an antitrust litigation brought by Dexon Computer, a technology reseller. Dexon claimed that Cisco used alleged monopoly power to force purchasers to pay supracompetitive prices. Dexon alleged that after customers paid Cisco for a maintenance and service package on equipment purchased from resellers like Dexon, Cisco demanded that customers buy new, overpriced equipment to continue service and avoid a technologically compromised network. Dexon also claimed that Cisco recruited the distributor CDW Corporation to help it exclude disfavored resellers and maintain various alleged network equipment monopolies. Cisco countered that its policies were procompetitive and that Dexon had sold counterfeit Cisco products.

An Analysis Group team led by Managing Principal Aaron Yeater and Vice Presidents Hitesh Makhija and David Smith supported Senior Advisor Keith R. Ugone, who filed expert reports and a declaration supporting a Daubert motion. He also testified at deposition and trial. Dr. Ugone evaluated Dexon’s damages claim and rebutted Dexon’s allegations related to market definition, market power, and market-wide harm.

Days before closing arguments were to be heard in the US District Court for the Eastern District of Texas, Dexon agreed to settle the case and voluntarily dismissed its antitrust allegations. As part of a comprehensive settlement agreement, Dexon agreed to pay a fee to resolve counterfeit claims raised by Cisco, stop selling unauthorized Cisco products, change its business model, and apply to join Cisco’s authorized reseller program.