The report we're using is Cases w/ Line Items (custom object).
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Hi Amber,
one way of doing this is create a formula field called Last Name and get the contacts Last Name (Contact.LastName) into the formula field , make it visible for all users but hide it from all page layouts. Use this formula field to group your report.
If you two different contacts have same last names, Stephen Brown and Stuart Brown, you report stats might not look accurate.