News & Events

Simpson Thacher represented French food group Danone in UNCITRAL international arbitration conducted in Singapore, governed by English law, against New Zealand dairy co-operative Fonterra, obtaining an award that Fonterra pay Danone €105 million (US$125 million) for a product recall in Asia Pacific that arose from a false, infant botulism contamination scare in August 2013. In addition to the original award, the Simpson Thacher team subsequently secured a payment to Danone of €29 million in interest and legal costs, which brings the total to €134 million (US$164.9 million).

Fonterra had reported to financial markets and provisioned in its financial statements a total of NZ$11 million (US$7.6 million) for the dispute, reflecting what it described as the “maximum contractual liability to Danone.” As a result of the €105 million award, Fonterra issued a profit warning downwardly revising its 2017-18 earnings forecast.

The Simpson Thacher team was featured in The Am Law Litigation Daily, which called the award “especially noteworthy.” The ruling also received coverage in The Associated Press, Reuters, U.S. News & World Report, The New Zealand Herald, Financial Times (subscription required) and Global Arbitration Review (subscription required).

The Simpson Thacher team for Danone included Partner Tyler Robinson and Retired Partner Robert Smit; and Associates Joshua Slocum, Alessia De Quincey and Lauren Brazier.