JZ LLC et al ats Hudson’s Bay Company Luxembourg, SARL

This Delaware, USA action involved several claims for a purchase price adjustment in respect of the retailer’s alleged financial statement misrepresentations and inaccuracies in three main areas – an overstatement of inventory values, an understatement in loyalty program liabilities, and an understatement in the costs associated with a store sublease.

CHS was retained by U.S. Counsel for the Defendant as consulting expert to assist in all aspects of understanding and articulating the financial claims and Canadian GAAP accounting issues. CHS assisted Counsel throughout the case including preliminary analyses, and at witness depositions, meetings, and trial.

The trial judge accepted the Defendant’s position that there were no financial statement misrepresentations that breached the share purchase agreement and dismissed the case, which was also upheld on appeal.