Cole Schotz Secures Victory in Expedited $1.5 Billion Arbitration

Cole Schotz recently secured a major win in a high-stakes, expedited arbitration in New York City involving claims tied to a $1.5 billion transaction. In a compressed eight-week proceeding, a team led by Michael D. Sirota, Warren A. Usatine, Lauren Manduke, and Arnold Picinich successfully defended their client against allegations of fiduciary breach arising from the sale of a 30% stake in an energy company to a continuation vehicle managed by the client. The dispute revolved around private equity, fund governance, and continuation vehicle transactions, an increasingly scrutinized area in today’s investment landscape. The Cole Schotz team developed and executed a focused, trial-ready strategy, demonstrating that the transaction was fair, appropriately structured, and fully disclosed to investors.

Through coordinated evidentiary submissions spanning multiple jurisdictions, the team established that the transaction process was robust and commercially reasonable, existing investors were not disadvantaged, and all material terms were transparently disclosed in advance of the investor vote. The arbitrator issued a final award in favor of the client on February 27, 2026, fully rejecting the fiduciary duty claims. The broader litigation team included Daniella Johner, Tiffany Castillo, and Vincent Ferrara, with Cole Schotz serving as co-counsel alongside Richards, Layton & Finger, one of Delaware’s leading firms. This result highlights Cole Schotz’s strength in handling complex, high-value disputes under accelerated timelines, particularly in matters involving private equity transactions and fiduciary duty claims.