Shout-Out: Paul Weiss and Clifford Chance Secure $1B Citigroup Win
Paul Weiss partners Ted Wells and Jack Baughman were awarded Litigator of the Week in 2008 for the win in New Jersey state court, but the case wasn't over until Italy's highest court had spoken.
April 17, 2019 at 01:17 PM
2 minute read
Paul, Weiss, Rifkind, Wharton & Garrison offices in Washington, D.C. March 24, 2015. Photo by Diego M. Radzinschi/THE NATIONAL LAW JOURNAL.
After a 15-year global battle, a team from Paul Weiss led by litigation partners Ted Wells and Jack Baughman plus overseas counsel from Clifford Chance on Tuesday secured a $1.098 billion win for Citigroup.
The case stemmed from the 2003 collapse of Italian dairy group Parmalat. Represented by Quinn Emanuel, Parmalat alleged that Citigroup aided and abetted a fraud by ex-Pamalat insiders that led to the company's bankruptcy.
The case went to trial in 2008 in New Jersey state court. Parmalat wanted $2 billion in damages. Instead, the jury found no liability for Citigroup—and awarded the bank $364.2 million on its counterclaims.
Lit Daily named Wells and Baughman Litigator of the Week on Oct. 24, 2008 for the victory—but the case wasn't over.
Until yesterday, that is. On April 16, Italy's Supreme Court ruled that the New Jersey judgment against Parmalat was final, rejecting Parmalat's last appeal.
According to Paul Weiss, the decision “means that Citi is owed 341 million shares in the new Parmalat as part of an agreement in the Parmalat bankruptcy proceedings; Parmalat's new owner, Lactalis, is required to purchase Citi's shares at 2.85 Euros per share—rendering the original judgment worth 971.85 million Euros, or $1.098 billion.”
Clifford Chance served as co-counsel in Italy.
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