Tyler E. Chapman, a partner with Todd & Weld LLP, and Maria T. Davis, an associate with the firm, obtained an award in their client's favor after successfully defending a $65 million dollar arbitration demand. The demand was filed against their client, an international information technology company, and raised claims concerning an unsuccessful simultaneous Merger and Acquisition and Initial Public Offering ("IPO"). Given the size of the demand, defense of the arbitration was a bet-the-company dispute. The demand also carried with it the possibility of treble damages.
The arbitration arose out of an agreement between Todd & Weld's client and a "merchant banker" to merge with two other information technology companies and then to be acquired by a shell corporation. The funds needed to acquire the merged corporation were to be raised through an IPO promoted by the shell corporation. Following the failure of the IPO, the shell corporation initiated its arbitration demand, alleging damages of $65 million.
Following a ten-day arbitration hearing, the arbitrator found no liability on the part of Todd & Weld's client and awarded no damages.