June 25, 2024
A Willkie litigation team led by partners Alexander Cheney and Stuart Lombardi and counsel Josh Levy was recognized as a “Runner Up” by The AmLaw Litigation Daily for securing a major arbitration trial victory for Womply, a Paycheck Protection Program (PPP) technology service provider. The win included more than $117 million in damages and defeated counterclaims brought by Benworth Capital Partners for more than $420 million. A final arbitration award issued on June 12 resolved more than half a billion dollars in dispute.
The high-stakes dispute raised novel regulatory issues related to the PPP, a government program created in response to the COVID-19 pandemic, in connection to Womply’s technology platform, “PPP Fast Lane” which helped small businesses navigate the process. Benworth, a Florida-based lender, used PPP Fast Lane to fund more than 300,000 PPP loans with a principal amount exceeding $4 billion, receiving more than $680 million in fees from the Small Business Administration, but failed to pay Womply all of the fees Womply earned under the parties’ agreements. After a seven-day trial, the arbitrator found that Womply’s interpretation of the contract and governing law were correct, issuing a nine-digit award for Womply and denying Benworth’s counterclaim for more than $420 million.
The cross-office arbitration team consisted of partners Alex Cheney and Stuart Lombardi, counsel Josh Levy, and associates Tiffany Lin, Dan Morris, Katherine Hanley, Adriana Morton and Vincent Palmeri.
Read more about the case and decision here.
