Transfer Pricing in a Shareholder Lawsuit

In a Delaware Chancery Court case, In re: Orbit/FR, Inc. Stockholders Litigation, minority shareholders alleged that the profits of a US subsidiary were artificially reduced via management fees paid to a French parent in the years leading to the buyout of the minority shareholders. Brattle Principal David Plastino, supported by other Brattle Principals and staff, submitted expert reports and testified in deposition as to the appropriate quantum of management fees and intercompany interest payable by the US subsidiary. The parties settled before trial.