Leon Gilbert and Michael McGarvey v. Unisys Corporation

Analysis Group was retained on behalf of Leon Gilbert and Michael McGarvey, the plaintiffs in a legal expenses dispute filed in the Delaware Chancery Court against their former employer, Unisys Corporation. In their complaint, Mr. Gilbert and Mr. McGarvey sought to compel monetary advancement from Unisys to pay for legal expenses incurred defending themselves in related litigation with Unisys. In support of their advancement claims, both plaintiffs argued that they held positions as officers of Unisys and as officers or employees of Unisys’ Digital Workplace Solutions (DWS) reportable segment, which constituted an enterprise of the company. Unisys countered that the plaintiffs were not officers at Unisys and maintained that Unisys’ DWS reportable segment was not an enterprise.

An Analysis Group team led by Vice President Evan Carter supported Vice President John Drum, who submitted an expert report and provided testimony at deposition and trial. Mr. Drum’s testimony addressed segment reporting accounting principles and provided an evaluation of whether the Unisys DWS reportable segment was an enterprise.

Vice Chancellor Paul Fioravanti ruled that DWS operated as an enterprise, that the plaintiffs were officers of Unisys, and that they were sued because of the nature of the work they did at the direction of Unisys for DWS and a Unisys subsidiary. The court concluded that Mr. Gilbert and Mr. McGarvey were entitled to their requested advancement of legal expenses incurred in the prior litigation.