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Rights Upheld

Upholding Minority Shareholder Rights in a Pharmaceutical Dispute

Rights Upheld

Upholding Minority Shareholder Rights in a Pharmaceutical Dispute

Ben JohnsonJames Nicholson
Key Contacts
Ben Johnson and James Nicholson

After an unlawful sale, how do you assess the true value of a business? 

In a bitterly fought suit, the minority shareholders of a manufacturer and distributor of a novel medication that relieves pain and treats cerebrovascular diseases in China commenced derivative actions for breach of duties against the directors of the company, claiming they had carried out a fraud in selling the company’s assets to the Chairman at a gross undervalue. The British Virgin Islands (“BVI”) Commercial Court had already handed down judgment on liability in favor of the minority shareholders and against the directors. FTI Consulting was engaged to determine the compensation that the minority shareholders were owed.  

Our Impact

Drawing on FTI Consulting's work, the BVI Commercial Court ruled in favor of the minority shareholders and against the directors. FTI Consulting produced a valuation that ensured fair compensation for the shareholders.

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Senior executive and businesman having a meeting in an office building

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FTI Consulting’s valuation of HKD441 million helped ensure fair compensation for the minority shareholders despite incomplete disclosures from the defendants. 

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Our Role

Managing material information gaps with a pragmatic and transparent approach

FTI Consulting provided critical expert testimony and valuation services, helping to secure a favorable outcome for minority shareholders in a high-stakes pharmaceutical business dispute.

  1. FTI Consulting conducted a complex valuation despite incomplete disclosures from defendants.

  2. The team prepared a detailed expert report on business growth prospects and risks as well as various potential valuation reference points to help determine the value of the business when it was sold.

  3. FTI Consulting testified at the trial on quantum and relief, where the court fully accepted Ben Johnson’s expert evidence, valuing the business conservatively at HKD441 million at the time of sale.

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