May 22, 2020 Introduction This deal is a reminder that a seller of a business needs to read the transactional documents (with the help of a competent lawyer) before signing. In this case it cost the seller $14.5 million. The…
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Owner Loses $14.5 Million Fraud Claim Against Majority Shareholder in Stock Deal
Posted in fraud in business sale, fraudulent inducement, shareholder release Tagged with: M&A stories, M&A tips, read before signing
Seller of target company’s release given in stock purchase agreement bars reimbursement claim of seller’s parent against target
Shareholder’s Parent is a leading North American provider of environmental services to commercial and governmental entities. Until November 1, 2015, Shareholder’s Parent indirectly owned all of the issued and outstanding stock of Target through its wholly-owned subsidiary, Shareholder. Shareholder provides…
Posted in shareholder release, stock purchase agreement
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