LG Household & Health Care v. Sunna Kim and Insil Kim

Analysis Group was retained on behalf of Insil and Sunna Kim, the former owners of the skincare and cosmetics company The Crème Shop and the respondents in an arbitration matter involving an alleged contract breach. South Korean consumer goods company LG Household & Health Care (LG) purchased a majority ownership stake of The Crème Shop from Insil and Sunna Kim in a Stock Purchase Agreement (SPA). LG subsequently filed International Chamber of Commerce (ICC) arbitration against the two former owners: Among other claims, LG alleged that the former owners’ involvement in other beauty-related business activities violated the non-compete provision of the SPA.

An Analysis Group team led by Vice President Kimberly Attia supported Vice President Thomas McGahee, who prepared a damages rebuttal report and testified at the hearing. Dr. McGahee challenged LG’s damages theory and presented an analysis of lost profits based on the sales of the at-issue competitors.

Although the tribunal found in favor of LG on liability, it relied on Dr. McGahee’s rebuttal testimony in its rejection of LG’s damages analysis, calling LG’s methodology “unconvincing.” The final award adopted Dr. McGahee’s lost profits analysis, which represented 3% of the damages asserted by LG.