News & Analysis as of

Successor Liability Mergers

Benesch

How DOJ’s Safe Harbor Policy Alters the Calculus for M&A Due Diligence

Benesch on

Since at least the adoption of the organizational Federal Sentencing Guidelines in 1991, the government has encouraged companies to adopt an effective compliance program that prevents and deters misconduct....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOJ Official Cites Old West ‘WANTED’ Posters in Announcement of New Whistleblower Monetary Awards Program

On March 7, 2024, Deputy Attorney General Lisa Monaco said that the U.S. Department of Justice (DOJ) will test out a program to pay whistleblowers if they provide information on serious financial crimes and foreign and...more

DarrowEverett LLP

Don’t Let Bad Indemnity Provisions Become Your Environmental Disaster

DarrowEverett LLP on

Successor liability is a phrase that corporate officers hope to never have to utter to their board of directors or shareholders. Unfortunately, it’s a common phrase in environmental litigation and a need-to-know concept in...more

Goldberg Segalla

Court Finds Plaintiff Properly Alleges Successor Liability to Survive Motion to Dismiss

Goldberg Segalla on

Supreme Court of New York, New York County, April 24, 2022 - The defendant, PB Heat LLC, filed a motion to dismiss the plaintiff’s complaint and a motion to impose sanctions. The plaintiff filed suit against PB Heat...more

McAfee & Taft

Buying a business? Don’t buy an employment lawsuit

McAfee & Taft on

When acquiring a business, companies sometimes unwittingly buy an employment lawsuit. Recently, the 10th Circuit – the federal appeals court that applies to Oklahoma employers – explained when a successor business can be held...more

Parker Poe Adams & Bernstein LLP

Tenth Circuit Case Points Out the Need for Employment Due Diligence in Merger and Acquisition Deals

We once had a client opine that he was looking to acquire a new business and not a lawsuit to go along with it. The risk of buying a company with poor human resource practices or pending claims should make review of labor...more

Nutter McClennen & Fish LLP

E-Gaming Company FaZe Clan Subject to Potential Successor Liability  

In Crashfund LLC v. FaZe Clan, investors in Wanderset Inc. sued successor e-gaming company, FaZe Clan. Wanderset investors claimed that their agreements with Wanderset granted them conditional rights to obtain stock...more

Latham & Watkins LLP

Big-Ticket Fines and Veil-Piercing Cases Raise Portfolio Company Liability Risks for PE Parents

Latham & Watkins LLP on

How can private equity firms identify and mitigate inherited liability risk from vulnerable portfolio companies? Ongoing big ticket regulatory fines coupled with high profile corporate veil cases indicate that private...more

Allen Matkins

Court Of Appeal Finds No Successor Liability Following Purchase Of Assets

Allen Matkins on

Buyers of assets typically like to pick and choose the assets and liabilities that they will acquire. In general, the law permits this. Thus, a corporation that purchases the principal assets of another corporation, will not...more

Nutter McClennen & Fish LLP

M&A 101: Basic Considerations in Transaction Negotiations

Q: What are the key considerations related to any deal structure? There are four: tax effects, transfer of liability, third party consents, and shareholder approval. Tax effects from transactions can be complex and are...more

Williams Mullen

Data Due Diligence In M&A Transactions: Data Quality and Liability

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As data is quickly becoming a significant corporate asset, lawyers in corporate transactions need to consider the associated legal risks. Failure to understand and address these risks can result in significant future costs to...more

Allen Matkins

Nevada Supreme Court Applies De Facto Merger Doctrine To Debt Forgiveness Transaction

Allen Matkins on

Last month, Professor Stephen Bainbridge posed the question of whether California recognizes the de facto merger doctrine outside of the successor liability context. Here was my response. Less than two weeks later, the...more

Allen Matkins

Does California Recognize The De Facto Merger Doctrine Outside The Successor Liability Context?

Allen Matkins on

Yesterday, Professor Stephen Bainbridge noted that California has applied the de facto merger doctrine to an asset purchase transaction to hold the acquiring corporation liable for tort liabilities of the selling corporation....more

Butler Snow LLP

Product Line Exception to Successor Non-Liability

Butler Snow LLP on

Generally, product liabilities do not flow to the buyer of a company’s assets, which can be a driving force behind structuring a deal as an asset purchase as opposed to a corporate merger. There are four traditional...more

Cozen O'Connor

8th Circuit Reverses to Uphold Successor Liability Defense, Highlighting The Importance of Consistent, Clear Descriptions Of...

Cozen O'Connor on

On April 5, the Court of Appeals for the Eighth Circuit wiped out a jury verdict in a products liability action and $13 million punitive damages award against a manufacturer and its wholly owned subsidiary on the basis that...more

Bass, Berry & Sims PLC

U.S. Dental Supply Company Penalized for Violating Iran Sanctions

Bass, Berry & Sims PLC on

•Many medical products can be exported to Iran – so long as a license is obtained •Imposition of successor liability underscores importance of pre-transaction due diligence •OFAC enforcement, as in the past, continues...more

BCLP

Privacy Due Diligence In A Merger Or Acquisition: A How-To Guide

BCLP on

The FTC can hold an acquirer responsible for the bad data privacy practices of a company that it acquires. Evaluating a target’s data privacy practices, however, can be daunting and complicated by the fact that many “data”...more

Foley & Lardner LLP

Employment Authorization Issues Arising From Corporate Restructuring

Foley & Lardner LLP on

American business experienced a near record number of mergers and acquisitions in 2016, and this trend is likely to continue in 2017. Such corporate transactions raise a number of legal issues, including employment issues....more

Locke Lord LLP

[Webinar] 28th Annual Employee Benefits Seminar - September 21st, 8:20am Central / 9:20am Eastern

Locke Lord LLP on

Program Highlights Please join the Locke Lord Employee Benefits and Executive Compensation Group for our 28th annual employee benefits seminar via webinar.  Our attorneys will provide an overview of current developments...more

Zelle  LLP

Employment Law Issues in Mergers and Acquisitions

Zelle LLP on

Last week, Microsoft announced its purchase of LinkedIn for $26.2 billion. This acquisition is interesting for a number of reasons, and is very likely to affect the future of professional social networking. It also got us...more

Adler Pollock & Sheehan P.C.

Mergers & Acquisitions Glossary

This Glossary contains many of the important terms and definitions used in the M&A world. The Glossary is not exhaustive, however. Like most areas of the law, M&A is a highly complex subject that involves several legal and...more

PilieroMazza PLLC

Could Your Employees Be Eligible for FMLA Leave on Their First Day of Work? The Answer Could Be Yes

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It would be easy for employers to assume that they need not worry about an employee’s eligibility for Family and Medical Leave Act (“FMLA”) leave until at least one year has passed since the employee began working for the...more

Proskauer - Corporate Defense and Disputes

DOJ Releases Second FCPA Opinion of 2014

The U.S. Department of Justice recently publicized its second Foreign Corrupt Practices Act Opinion Procedure Release of 2014. In the Release, the DOJ reiterated that an acquiring company may not inherit FCPA liability when...more

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