Arthur Andersen and Andersen Consulting split
After a lengthy and sometimes bitter fight, Arthur Andersen and Andersen Consulting will split up following a ruling by international arbitrator Guillermo Gamba of the International Court of Arbitration decided that Andersen Consulting must give up the Andersen name and pay about $1 billion to Arthur Andersen partners. The decision cannot be appealed.
According to the consulting group, the arbitrator concluded that Andersen Worldwide breached its material obligations under the legal documents controlling the relationship among the parties and that all Andersen Consulting’s obligations to Andersen Worldwide and Arthur Andersen are terminated effective August 7.
"This is a total win for Andersen Consulting," said Joe Forehand, global managing partner and CEO of Andersen Consulting, the world’s largest consulting company. "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. Now it is time to move on independently, continuing to focus on our clients, our people and our ambitious reinvention agenda."
Though also claiming victory, Arthur Andersen’s chief executive, Jim Wadia, resigned shortly after the ruling was announced.
The arbitrator also rejected Arthur Andersen's claim that Andersen Consulting is required to share the technology Andersen Consulting developed by itself. The arbitrator does require Andersen Consulting to surrender the name Andersen Consulting to Andersen Worldwide, effective December 31, 2000, because legal title to the name Andersen Consulting is held by Arthur Andersen.