(August 8 – 09:30 ET) – Andersen Consulting is splitting from its accounting firm brethren effective immediately.
Yesterday an arbitrator, Dr. Guillermo Gamba, appointed by the International Chamber of Commerce, ruled in favor of Andersen Consulting in its bid to split from Andersen Worldwide and Arthur Andersen. The arbitrator concluded that Andersen Worldwide breached its material obligations to the consulting side and that all obligations between them are terminated. Andersen Consulting has been formally separated from, and has no further financial obligations to, Andersen Worldwide. The arbitrator’s award is final and binding.
“This is a total win for Andersen Consulting,” said Joe Forehand, global managing partner and CEO of Andersen Consulting. “We won. It’s over. We have defeated Arthur Andersen’s preposterous claim that we owe them $14.5 billion. We owe them nothing beyond our contractual transfer payments, which end today. Now it is time to move on independently, continuing to focus on our clients, our people and our ambitious reinvention agenda.”
Under the ruling, Andersen Consulting is not required to share its technology with its former parent, but it must change its name by December 31. Andersen Consulting is an US$8.9 billion global management and technology consulting firm with approximately 65,000 people in 48 countries.
-IE Staff