Mason Capital v. Republic of Korea (PCA Case No. 2018-55)

international arbitration

Dr. Tiago Duarte-Silva and his team helped Mason Capital L.P. and Mason Capital Management LLC obtain significant compensation in an investor-state arbitration adverse to the Republic of Korea (PCA case 2018-55).

The claims revolved around the claimant’s investments in Samsung C&T and Samsung Electronics Co., members of the Samsung group of companies. The claimant’s investments were harmed when Samsung C&T merged with Cheil, another company within the Samsung Group, on pricing terms that were unfavorable to Samsung C&T’s shareholders. It was subsequently known that high-ranking South Korean government officials had interfered in the merger approval process.

In two expert reports and oral testimony in a March 2022 hearing in New York, Dr. Duarte-Silva provided an independent assessment of the counterfactual result of the merger vote and of the harm due to the Korean government’s actions.

Dr. Duarte-Silva quantified damages to the value of claimant’s shares in the Samsung group companies as well as the lost incentive allocation to claimant’s general partner, based on the application of a wide range of finance and accounting methods, including various valuation techniques, counterfactual analyses, stock market efficiency tests, and event studies.

Dr. Duarte-Silva was retained by Latham & Watkins to provide expert testimony and also worked closely with KL Partners and Prof. Daniel Wolfenzon of Columbia University. Dr. Duarte-Silva was assisted by a CRA team that included Nikolai Caswell, Zawadi Lemayian, Charlene Wang, and Erin Angell.