October 30, 2020
Both of the firms vying for interim lead counsel spots in antitrust litigation against Fair Isaac Corp. agree that the matter ought to be split in two, but that didn’t stop aspersions from being cast as they sought to make their case before an Illinois federal court.
Cohen Milstein Sellers & Toll PLLC and Scott & Scott Attorneys at Law LLP are both hoping to secure lead counsel spots in the sprawling litigation, which accuses the company best known as FICO of monopolizing the credit score market, but for different sets of buyers.
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All the suing parties, direct and indirect purchasers alike, lay similar claims against Fair Issac. The lenders say they paid too much for the credit scores that they rely on for risk management because of the monopoly built by the credit giant, which kept competitors at bay.
The FICO credit scoring model has ruled the market for years now, its dominance so cemented that the company boasts that it sells more scores each year than McDonald’s sells hamburgers, according to a suit filed by Sky Federal Credit Union.
All three major credit bureaus rely on FICO to generate credit scores, which lenders use when deciding whether to dole out everything from home and auto loans to credit cards.
Suits began piling up after FICO revealed in mid-March that it was the subject of a U.S. Department of Justice probe aimed at uncovering whether the company had been engaging in anti-competitive conduct to maintain its market share. The court is now mulling how to consolidate those actions.
Read Cohen Milstein, Scott & Scott Both Want to Lead FICO Fight.