Litigation partners Andrew Gordon, Geoff Chepiga and Tiana Voegelin spoke with Law360 Pulse about the trial strategy they used to win a complete victory on behalf of The Carlyle Group and related entities and individuals in an earnout dispute before the Delaware Court of Chancery.
In “How Paul, Weiss’s ‘Flip The Script’ Tactic Beat $68M Earnout Bid,” published on October 15, Andrew explained his team’s strategy in the case. Suresh Katta, the founder and former CEO of Saama Technologies, which Carlyle acquired in 2021, sued claiming he was owed almost $100 million, including interest, for an earnout payment following Carlyle’s acquisition. The case featured a “usual fact pattern” for an earnout dispute, but the Paul, Weiss team decided to take a more aggressive approach. “I think that we wanted to flip the script here and go on the offense,” Andrew said, noting that Paul, Weiss’s strategy centered on showing Katta had engaged in misconduct that damaged the company he founded and Carlyle acquired.
Carlyle ultimately prevailed on all claims and won $7.3 million in damages against Katta for his misconduct in what is likely the first time a buyer defendant both defeated earnout claims and won damages on a counterclaim in the Court of Chancery.
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