The Respondent sold to the Claimant a new orthodontic solution that it had developed. The Share Purchase Agreement included an earn out mechanism that should have benefited the Respondent had the Claimant used reasonable effort to develop and market the new orthodontic solution. However, the Claimant failed to use reasonable effort and eventually initiated an arbitration claiming the Respondent was responsible for its failure to develop and market the product and asking for the reimbursement of earn out advanced payments.
Secretariat professionals were engaged by the Respondent to perform a preliminary assessment of a possible counterclaim and assess the opportunity of a counterclaim for lost earn out. We eventually prepared expert reports assessing the market share that could have been achieved by the new solution had the Claimant used reasonable effort and quantified the net present value of the lost earn out attributable to the Respondent under two alternative scenarios.
Based on our expert work, the tribunal rejected in its entirety the Claimant’s damages claim and awarded the Respondent for its counterclaim the amount that we had calculated under one of the two scenarios considered. The award also stipulated that the Claimant should support 80% of the tribunal expenses, and more than 50% of the legal and expert fees incurred by the Respondent.
Secretariat Secures No. 1 Spot on Lexology Index’s Arbitration 2025 Report
We are proud to announce that Secretariat has earned the position of No. 1, top-ranked Consulting Expert Firm in the Lexology Index Arbitration 2025 report. The report features firms and experts who have distinguished themselves as industry leaders based on their independence, sharp testifying skills, clear communications, and meticulous analytical insights.
Eric Poer, CPA, a globally recognized securities, accounting, valuation, and regulatory enforcement expert, was retained by Orrick, Herrington, and Sutcliffe LLP to provide expert and summary witness testimony in defense of Apple Inc., CEO Timothy Cook, and CFO Luca Maestri in a high-stakes securities class action dispute.
Neil Gaudion provided an expert report and testimony on behalf of Five Star Resort Owner, LLC, in construction dispute litigation surrounding a $2 billion Ritz-Carlton Hotel development. The jury awarded $2 million, plus interest, an amount determined from Mr. Gaudion’s testimony.