Fraud in M&A | McCauley Knutsen Business Legal Solutions Blog

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How Overstated Revenue Leads to Fraud Claims and Unlimited Liability

Posted on January 17, 2025 by mklaw_admin

Discover the high stakes of fraud allegations in M&A transactions through this case study involving overstated revenue and nondisclosure. When an IT consulting firm failed to disclose that its projected $25 million revenue was inflated due to enterprise division contributions,…

Posted in fraud in business sale, fraudulent inducement Tagged with: and seller's legal obligations., asset purchase agreement, Breach of contract in M&A, buyer fraud claims, contractual representations, Delaware Superior Court, false revenue claims, fraud defense in M&A, Fraud in M&A, Indemnification caps, IT consulting M&A, Legal Risks in M&A, M&A case studies, M&A Due Diligence, M&A legal disputes, M&A litigation, M&A negotiations, M&A transaction risks, purchase price adjustments, revenue misrepresentation, seller disclosures, SMB acquisition

The Reach of a Forum Selection Clause: Can M&A Buyer’s Fraud Suit against Seller and Multiple Owners and Managers Be Tried in Delaware?

Posted on June 4, 2024 by mklaw_admin

Dive into the complexities of M&A forum selection clauses with our latest blog post, which analyzes a case where a buyer’s fraud suit against a seller and multiple managers and owners was partially dismissed in Delaware. The court ruled in…

Posted in fraud in business sale, Problems with financials, problems with forum selection clauses Tagged with: acquisition disputes, Chumash Capital Investments case, commercial litigation, complex commercial litigation, corporate litigation, cross-jurisdictional legal issues, defense contractor acquisition, Delaware corporate law, Delaware Superior Court, Forum Selection Clauses, Fraud in M&A, fraudulent financial statements, Grand Mesa Partners lawsuit, legal complexities in M&A, legal strategy in M&A, Litigation strategy, M&A legal disputes, M&A legal topics, M&A Transactions, multi-defendant litigation, multi-jurisdictional litigation

M&A Fraud Liability and Bankruptcy Simplified

Posted on February 23, 2019 by John McCauley

Explore the legal implications of fraud in M&A deals and how it can impact bankruptcy proceedings. Learn from the case of In Re Morabito and discover why fraud liability may not be discharged in bankruptcy. M&A Stories February 23, 2019…

Posted in purchase agreement Tagged with: Bankruptcy Simplified, Court Rulings in M&A Fraud Cases, Fraud in M&A, In Re Morabito Case, Indemnification caps, Legal Consequences of Default, Legal Implications of M&A Fraud, M&A Fraud Liability, Non-dischargeable Debt, Seller-Buyer Dispute

Buyer’s Financial Misrepresentations in M&A Deal: A Cautionary Tale

Posted on December 17, 2018 by John McCauley

Explore a cautionary tale in M&A where a seller alleged fraud due to buyer’s financial misrepresentations. Understand the legal nuances and lessons learned. M&A Stories December 17, 2018 In this M&A legal blog post, we discuss a case where a…

Posted in due diligence, fraud in business sale, material, receipt of buyer equity or security, receipt of buyer equity or security, reliance Tagged with: asset purchase agreement, Buyer's financial misrepresentations, Fraud in M&A, Indemnification obligations, Inflated forecasts, Justifiable reliance, Legal staffing services, Lessons in M&A, M&A legal blog, Material misrepresentation, Seller's equity

Buyer’s Challenge: Navigating Unforeseen Issues Post-M&A

Posted on August 16, 2018 by John McCauley

Explore the intricate world of M&A with our latest blog post, “Buyer’s Challenge: Navigating Unforeseen Issues Post-M&A.” Delve into a real-life case, discovering the pitfalls and lessons learned in the M&A process. Uncover the importance of offset provisions in promissory…

Posted in offset right, post asset purchase issues, promissory note Tagged with: asset purchase agreement, Business Sale, Business Valuation, buyer protection, Buyer’s challenges, Carter v. Urban Service Systems Corporation, contractual arrangements, Court ruling, District of Columbia, due diligence, Fraud in M&A, Grit Contract, Industry Insights, Legal action, legal case study, legal implications, Legal intricacies, Legal remedies, M&A challenges, M&A legal, M&A negotiations, Merger and Acquisition stories, Offset provisions, Post-closing challenges, Profit projections, Promissory notes, Stock reclamation, Unforeseen issues, Washington D.C.