Court rules that former seller employees stole seller trade secrets and are using them to compete against the buyer. M&A Stories March 16, 2023 Introduction A buyer of a business runs the risk that the seller’s employees will compete against…
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Business Buyer Sues Key Former Seller Employee for Using Seller Business Cards
Introduction A key employee in a service business may have valuable personal relationships with the company’s clients. A buyer of the service business risks the key employee walking out the door with company clients after the closing. The deal Here,…
Posted in business cards, trade secret misappropriation by former seller employee Tagged with: business card or Rolodex
Medical Practice Buyer Sues Selling Doctor for Post-Closing Taking of Patient List
Introduction A patient list may be a valuable and confidential asset of a medical practice. Therefore, a buyer of a medical practice will want to keep the selling doctor from taking the patient list with him or her after the…
Business Asset Buyer Wins Successor Liability Skirmish with Union
Introduction This is a continuing saga of a business asset buyer’s post-closing battle with a seller’s union. Chapter 1 is found in an earlier blog: http://www.mk-law.com/wpblog/court-says-asset-buyer-of-business-can-sue-seller-for-failure-to-disclose-its-union-contract-obligation/ The deal The seller and buyer both performed waterproofing, concrete and masonry restoration, and…
Court Says That Buyer of Business Not Likely to Win Trade Secret Suit
Introduction A buyer of a business sued the seller’s owner to stop him from competing against the owner’s old business. The deal This case involved the sale of a seafood distribution business. The seller was a San Francisco based organic…
Posted in asset purchase agreement, trade secret misappropriation by former seller employee Tagged with: customer list, suppliers, trade secret
Buyer’s purchase price may triple post-closing because of underfunded union pension plan
Seller was a wire-forming company. A collective bargaining agreement with the union representing its workforce obligated Seller to contribute to a multiemployer pension plan on behalf of the employees. In September 2013, after Seller determined that it could not stay…
Court finds that buyer of a California union skilled nursing facility had no constructive knowledge of seller’s multi-employer pension plan withdrawal liability
This is a follow up to a discussion of an earlier June court decision involving the same business buyer. http://www.mk-law.com/wpblog/buyer-of-a-california-union-skilled-nursing-facility-faces-multi-employer-pension-plan-withdrawal-liability-if-buyer-had-constructive-knowledge-of-the-potential-liability/ Buyer purchased a 99-bed skilled nursing facility located Santa Clarita, California from Seller through an asset purchase agreement that closed…
Court says asset buyer of business can sue seller for failure to disclose its union contract obligation
In this post-closing lawsuit, Unions comprised four jointly-managed multiemployer employee benefit plans. Seller was a Nebraska corporation which performed waterproofing, concrete and masonry restoration, and roofing services in Nebraska and the Midwest. Buyer was also a Nebraska corporation, performing commercial…
Buyer of trucking business held liable for unpaid compensation of former seller employees under the federal layoff notice law – the WARN Act
Seller, based in Little Rock, Arkansas, owned and operated a commercial trucking business that serviced customers throughout the United States. On December 4, 2008, Seller and Buyer (also a trucking company with headquarters in Indianapolis, Indiana) entered into a written…
Buyer of a California union skilled nursing facility faces multi-employer pension plan withdrawal liability if buyer had constructive knowledge of the potential liability
Buyer purchased a 99-bed skilled nursing facility located Santa Clarita, California from Seller through an asset purchase agreement that closed on January 5, 2015. After the closing Buyer was sued by a multi-employer pension plan (union pension plan) for Seller’s…
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