YKVN recently obtained a favorable settlement in a contentious international arbitration matter before the Singapore International Arbitration Center (SIAC) and related proceedings in Vietnam. YKVN represented the individual shareholders of a leading Vietnamese pharmaceutical entity (Respondents) that was acquired by a major international pharmaceutical company (Claimant). A dispute arose between the parties over the refusal by the Claimant to make agreed-upon acquisition payments to the Respondents. The Claimant, represented by one of the largest law firms in the world, asserted claims for fraud and misrepresentation relating to the information provided by the Respondents during due diligence prior to the acquisition. The Claimant sought over US$50 million in damages. An international panel of three arbitrators was appointed to preside over the arbitration. There were also parallel legal proceedings initiated by YKVN in Vietnam. Per the settlement, the Claimant dismissed with prejudice all of its claims and actually agreed to pay YKVN’s clients nearly US$10 million.
This was perhaps the most contentious and complex litigation between a major foreign entity and its Vietnamese shareholders since Vietnam opened its market to foreign investors. This was also the first time that a Vietnam-based law firm (YKVN) was retained to solely prosecute an international arbitration venued outside of Vietnam. The matter was also significant in that YKVN implemented a legal strategy that consisted of not only aggressively arbitrating the dispute before the SIAC, but also pursuing concurrent lawsuits over collateral issues before the Vietnamese courts. YKVN was also prepared to file additional lawsuits against the other side’s executives in the U.S. and Canada.