Case
Payment Logistics Limited v. Lighthouse Network, LLC, et al.
Analysis Group was retained on behalf of Shift4 Corporation, Shift4 Payments, and Lighthouse Network (collectively, Shift4), the defendants in an antitrust suit brought by Payment Logistics Limited (PLL), a payment processing company. The defendants engaged in a series of mergers that allegedly reduced competition in what PLL claimed to be the market for payment interfaces serving mid-to-large table-service restaurants. PLL alleged that these transactions gave Shift4 market power and that PLL had been harmed by having to pay higher transaction fees for payment services. PLL filed suit against Shift4, alleging violations of various provisions of the Clayton and Sherman Acts, and sought a preliminary injunction.
An Analysis Group team led by Senior Advisor Almudena Arcelus and Vice President Devin Reilly supported Managing Principal Divya Mathur, who filed an expert declaration regarding PLL’s request for a preliminary injunction. Dr. Mathur provided an economic assessment of competition in the payment processing industry and addressed PLL’s market definition. Among other findings, she showed that there were many large incumbent firms and smaller emergent ones competing in the payment processing industry, and opined that the market alleged by PLL was improper and overly narrow because industry competitors served a wide range of merchants beyond mid-to-large table-service restaurants. Dr. Mathur separately addressed concerns that merchants were “locked in” to their payment interfaces and explained that the at-issue mergers reflected a broader trend toward integration in a dynamic and competitive marketplace.
A judge in the US District Court for the Southern District of California denied PLL’s motion for the preliminary injunction, finding that PLL had failed to properly define a relevant market. The judge subsequently dismissed the lawsuit for failure to state a claim, holding that PLL had not alleged facts sufficient to support an antitrust injury and thus lacked standing to bring the suit.
Meet Our People
Devin Reilly
Vice PresidentDr. Reilly specializes in the application of economic and financial analysis to litigation, regulatory investigations, and consulting efforts in a range of areas, including antitrust and competition, finance and securities, class certification, and intellectual property (IP). He has conducted economic analyses and led case teams in support of academic and industry experts. Dr. Reilly’s antitrust and competition case work includes analyzing market definition and competitive effects, two-sided markets, damages, and class certification, as well as supporting parties’ compliance with merger and investigative requests. His experience also includes analyzing lost profits, reasonable royalties, and commercial success in IP cases; evaluating materiality of disclosures in securities litigations; supporting industry experts in financial services matters; and analyzing class certification in technology, finance, and other industries. Dr. Reilly has worked on behalf of both the US government and prominent firms in industries such as technology, telecommunications, e-commerce, financial services, pharmaceuticals and medical devices, and manufacturing. His research on corporate governance, innovation and entrepreneurship, and public economics has been published in The Review of Financial Studies, among other publications. He currently serves as the Young Economist Representative for the American Bar Association’s Antitrust Magazine. Dr. Reilly received the Joel Popkin Graduate Student Teaching Prize in Economics and the Lawrence Robbins Prize in Economics, both from the University of Pennsylvania.