2016 ANNUAL REVIEW Dynamic Solutions
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2016 ANNUAL REVIEW Dynamic Solutions A message from our Chairman Helping our clients navigate their 1,000 lawyers complex business and legal issues, $1B in revenue we’ve deepened our areas of expertise and expanded our presence. In 2016, 19 offices we surpassed 1,000 lawyers firmwide, Firm of the Year opened our 19th office and experienced LAW360 record demand for our legal services. Top 12 U.S. Law Firms General Counsel Rely on as A high level of integration across our platform enables us Go-To Outside Counsel to deliver innovative, efficient solutions. We look forward to continuing to partner with you in the coming year. BTI CONSULTING GROUP, 2016 BRAND ELITE REPORT ROBERT D. HAYS 52 Practice Area Rankings Chairman CHAMBERS GLOBAL 2016 ANNUAL REVIEW 1 When the odds are stacked against you Facing mass tort litigation of emotionally charged cases that threaten its reputation and business operations, GlaxoSmithKline has turned to King & Spalding to defend its franchise drug, Paxil, and its bottom line for over a decade. 2 KING & SPALDING Decades of MANAGING ALLEGATIONS KNOWING THE SCIENCE CONTAINING RISK relentless litigation A host of lawsuits related Our Product Liability team, By whittling down to Paxil, a top-selling coordinating with GSK’s the number of Paxil- antidepressant taken by science counsel, has used related lawsuits through Thousands of millions of patients, has in-depth knowledge of dismissals and strategic plaintiff claims been filed against GSK the science and scientific settlements, and since 2001. Any substantial literature to challenge and by vigorously defending Billions in losses in these high-profile exclude plaintiffs’ experts. and trying others, the potential liability cases, involving allegations Gaining acceptance of a substantial potential risk related to discontinuation Lone Pine order, which to GSK from successive symptoms, suicide required basic proof of waves of high-stakes and birth defects, would having taken Paxil and allegations was mitigated. create balance-sheet- restricted alleged injuries The stability of our Product impacting exposure to those identified in the Liability team over time, for the UK-headquartered literature, was instrumental and our firm’s leading pharmaceutical. Given in dismissing some cases capabilities in FDA, Go to the new kslaw.com to the potential risk, GSK early on. And we’ve drawn government investigations, learn more about the case… and Paxil had to be on established relationships and appellate, create vigorously defended. with talented local counsel important efficiencies to strategically litigate for GSK and similar life cases where they were sciences majors. originally brought across the U.S. Resilience and endurance 3 WAVES OF ALLEGATIONS Pregnancy Over a 16-year period, we have helped GSK address thousands of claims, each wave triggered by a Discontinuation unique set of circumstances. Out of nearly 7,700 cases, only four have gone to trial — two in which CASES we achieved dismissals and two Suicide/ that found for the plaintiff, but with Violence considerably smaller damages than requested. TIME 2016 ANNUAL REVIEW 3 Thwarting a $9 billion shakedown When the corrupted judiciary of a sovereign state threatened Chevron’s business, the U.S. oil and gas major turned to King & Spalding. 4 KING & SPALDING $9 billion at stake USING ARBITRATION PURSUING BREAKING LEGAL GROUND TACTICALLY INCREMENTAL WINS Without jurisdiction, the A lawsuit brought by a So that a single court using One of the largest tribunal could not have U.S.-based lawyer alleged bad evidence couldn’t tie ruled on Chevron’s behalf. international that Texaco, now owned by up a multinational, we To enable its authority, arbitrations in history Chevron, was responsible worked closely with Chevron we significantly advanced for extraordinary to impress upon the arbitral what’s known as the Potential global environmental pollution tribunal the outsized cost lifespan theory, whereby in Ecuador. The plaintiffs of the judgment for Chevron disruption for Chevron an investment is viewed as intended to enforce the and to motivate it to including any remediation, $9 billion verdict reached move quickly. making it possible for an in that country by seizing Drawing on cross-firm investment treaty tribunal Chevron assets around expertise in arbitration, to rule in a dispute involving the world. trade, appellate and remediation. But fraud was suspected environmental law, and Reflecting its efficacy, in the Ecuadorian courts. some 100 lawyers over multiple tribunals have Go to the new kslaw.com to And Chevron refused to more than 20 years, our since adopted this theory learn more about the case… succumb. K&S protected approach of pursuing to find jurisdiction, while our client by filing a treaty interim awards along the aspects of the case are also arbitration against Ecuador way proved essential. taught in U.S. law schools. to ban enforcement of the We also helped Chevron judgment worldwide. prevail when those awards were challenged, including by choosing and working closely with Dutch counsel in The Hague. A case that spans decades 1964 2009 2016 Ecuador’s state oil company, King & Spalding files a treaty The District Court of The PetroEcuador, begins operations arbitration against Ecuador on Hague rejects Ecuador’s in Lago Agrio oil field. Texaco behalf of Chevron and TexPet under attempt to set aside the Petroleum (TexPet, which later U.S.-Ecuador BIT, alleging that Lago arbitral awards at their legal became a subsidiary of Chevron in Agrio violated the 95–98 settlement seat, and upholds all of the 2001) joins as a minority partner. and other protected rights. BIT tribunal’s awards to date. 2016 ANNUAL REVIEW 5 A rising star accelerates As Total System Services, Inc. (TSYS), a leading global payments solutions provider, has grown to become one of the largest payment companies in the U.S., King & Spalding has been a key partner. When TSYS moved to substantially expand its merchant business with a high-stakes acquisition, the strength of our partnership was brought to bear. 6 KING & SPALDING $2.35 billion WALKING THE LINE TAILORING GROWTH GAINING LIFT acquisition Since 2007, TSYS has Having worked closely Focused on achieving been building out its front- with TSYS over the years, scale, TSYS became the end platform as part of a K&S understands why sixth-largest merchant- Key win in an long-term growth plan. TransFirst was a fit. Largely acquiring business in expansion race Most recently, TSYS was the same M&A team has the U.S. — a strategically selected as the sale partner worked closely with TSYS important business line for An acquisition for TransFirst, a Vista Equity for many years, helping the provider — by acquiring target with a viable Partners portfolio company map out where it’s headed TransFirst. alternative and leading U.S. merchant and how to get there. As As fintech continues to solutions provider to a result, we were able to evolve, K&S brings together 235,000+ U.S. businesses. measure the inherent risks strengths in cybersecurity, But with TransFirst dual- of the TransFirst purchase M&A and finance to serve tracking an IPO alongside a against TSYS’s objectives our clients’ complex needs sale to a strategic partner, with nuance. from start to finish. one false step could have Advancing the bid, we drew meant no sale. on cross-firm expertise Go to the new kslaw.com in finance, tax, employee to learn more about the transaction… benefits, IP, antitrust and insurance. And in April 2016, we helped TSYS close on its biggest strategic acquisition to date, purchasing TransFirst for $2.35 billion. Winning in a competitive environment As TSYS has sought to further March 2010 July 2013 April 2016 expand its role in the payments value chain, K&S has helped structure and negotiate acquisitions that are a fit with the Acquires 51% of Buys leading debit Acquires leading U.S. underpinnings of its business. First National Merchant card provider NetSpend merchant solutions Solutions; buys remaining for approximately provider TransFirst in a 49% later in 2010. $1.4 billion. $2.35 billion all cash transaction. 2016 ANNUAL REVIEW 7 Dynamic Solutions Depending on the opportunity or challenge facing our clients, we bring together partners, technical experts and legal capabilities across our 19 offices to deliver tailored, commercially savvy solutions. 8 KING & SPALDING Energy Sector Prowess LITIGATION Enforcing an Annulled Arbitral Award Richard T. Marooney, Jr. New York CLIENT INTEREST CONTRACTS AND KBR subsidiary COMMISA sought to recover a more than $400 million BUSINESS TORTS International Chamber of Commerce arbitration award first secured by Charles C. Correll, Jr. Houston King & Spalding and later annulled by a Mexican court. The original award was rendered following a contract dispute between COMMISA and INTERNATIONAL a subsidiary of Pemex, Mexico’s state-run energy entity, regarding the ARBITRATION AND LITIGATION engineering, design and construction of offshore oil platforms. Guillermo Aguilar-Alvarez New York LEVERAGING THE K&S PLATFORM James E. Berger Drawing on cross-office expertise in international arbitration and cross- New York border litigation, partner Rich Marooney spearheaded the enforcement of the annulled arbitral award in the Southern District of New York. In APPELLATE, CONSTITUTIONAL AND a three-day evidentiary hearing, a Manhattan judge confirmed the original ADMINISTRATIVE LAW arbitration award in favor of COMMISA and later entered judgment Jeffrey S. Bucholtz against Pemex for a combined total of more than $465 million. In 2016, Washington, D.C. the Second Circuit Court of Appeals affirmed the trial court’s decision. COMMERCIAL SOLUTION COMMISA collected on the arbitral award and was made whole for the good work it did for Pemex. The win protects the integrity of the arbitral process and shows that U.S. courts need not defer to foreign court decisions that offend basic notions of justice and fairness. COMMISA v.