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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

Posted in due diligence, fraud in business sale, post asset purchase issues, representations and warranties, successor liability, union fringe benefits, union liabilities

Court permits business asset buyer’s product liability carrier to sue the seller for indemnification

This lawsuit stems from a dispute over an April 9, 2012 asset purchase agreement between the buyer and seller. Pursuant to the agreement, the buyer purchased a set of assets from the seller, including the design of the seller’s exercise equipment. The

Posted in asset seller's liabilities, compliance with all applicable laws, excluded liabilities, representations and warranties

A buyer of a government contractor’s business incurs $15.5 million liability to seller for failing to disclose a pending government investigation

The seller was a government contractor that provided services to U.S. intelligence agencies. Its investment bank introduced the seller to the buyer, a government contractor specializing in strategic planning, cost and schedule analysis, acquisition management, and program assessment. The buyer

Posted in no pending government investigations or inquiries, representations and warranties

Seller of business learns lesson about risks in an earn out

Today I want to talk about a seller of a business who learns how buyer’s problems can hurt his chances of receiving an earn out. Our story is drawn from a case that was tried before the nation’s oldest business

Posted in due diligence, earn outs, representations and warranties

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