News & Analysis as of

Successor Liability

Kilpatrick

5 Key Takeaways 2025 SALT Summer Update

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Kilpatrick’s David Hughes and Jordan Goodman recently presented a “2025 SALT Summer Update” in association with AGN International - a worldwide association of separate and independent accounting and advisory businesses who...more

Paul Hastings LLP

DOJ’s M&A Safe Harbor Highlights Importance of Post-Close Due Diligence and Integration

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On June 16, the U.S. Department of Justice’s (DOJ’s or Department’s) National Security Division (NSD or Division) announced they had declined to prosecute the private equity firm White Deer Management LLC for violations of...more

Quarles & Brady LLP

DOJ Uses Successor Liability as a Civil Cybersecurity Enforcement Tool: Comprehensive Diligence Now May Save Millions Later

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The United States Department of Justice (DOJ) recently settled a qui tam suit with a defense contractor and its successor company for $8.4 million, resolving allegations that the contractor and successor company violated the...more

Morris, Manning & Martin, LLP

Successor Entity Liability for Violations of the Occupational Safety and Health Act

Anyone engaged in the buying and selling of businesses should be aware that acquiring a company that has been cited for health and safety violations could result in the assessment of increased penalties against the successor...more

Freeman Law

Risks in Avoiding State Tax Obligations

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When a business has been hit with substantial tax liability, it can often be tempting to pack things up and abandon the business. Often, taxpayers consider the possibility of opening a new business in its place, as a means...more

Husch Blackwell LLP

Michigan Issues Updated Guidance on Successor Liability

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The Michigan Department of Treasury recently issued updated guidance addressing successor liability in response to Mertz v. Dep’t of Treasury [Dkt. No. 365480 (June 13, 2024)], a recent case before the Michigan Court of...more

Seyfarth Shaw LLP

Six Essential Tips for Navigating Mergers & Acquisitions (M&A) in Government Contracts

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In honor of the release of the 6th Edition of the Government Contracts Compliance Handbook, we are sharing six essential tips for successfully navigating Mergers & Acquisitions (M&A) in government contracting. The...more

Fisher Phillips

Successor Withdrawal Liability in Asset Sales: 5 Tips for Employers Before Buying the Assets of a Unionized Company

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When a New York waste operator took over a waste hauling and recycling contract for Westchester County last year, the successful acquisition of a multimillion-dollar business opportunity turned into a pension liability...more

CDF Labor Law LLP

NLRB, DOJ, FTC and DOL Formalize the Exchange of Information to Help Scrutinize The Impact of Mergers on Workers

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The MOU - On August 28, 2024, the National Labor Relations Board and Department of Labor (“Labor Agencies”) entered into a Memorandum of Understanding with the Department of Justice – Antitrust Division and the Federal...more

Goldberg Segalla

Motion for Summary Judgment Denied as Plaintiff Failed to Establish De Facto Merger Doctrine

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Jurisdiction: Supreme Court of New York, New York County - This action arises out of plaintiff Hydraulic IP Holdings LLC’s attempt to enforce a judgment entered against non-party Grace Apparel LLC. Plaintiff’s complaint...more

Strafford

[Webinar] Drafting Asset Purchase Agreements: Reps, Warranties, Covenants, Conditions, Indemnity, and Other Provisions - July...

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This CLE course will guide deal counsel in drafting and negotiating asset purchase agreements. The panel will discuss legal considerations when negotiating representations and warranties, indemnities, covenants, closing...more

Benesch

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

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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

Tucker Arensberg, P.C.

Case Alert: Court Holds that “There is No Third Element for ERISA Successor Liability.”

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Successor liability is a powerful collection tool for multiemployer plans under ERISA. It most commonly arises in the context of asset sales (although it is not limited to that situation)....more

Seyfarth Shaw LLP

Court of Appeals Clarifies New York’s Approach to “Successor Jurisdiction”

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On April 18, 2024, the New York Court of Appeals (New York’s highest appellate court) issued a decision in Lelchook v. Société Générale de Banque au Liban SAL, --- N.E.3d ---, 2024 WL 1661460 (Apr. 18, 2024) in which it held...more

Seyfarth Shaw LLP

Forgotten Due Diligence: Overlooked Occupational Safety & Health, OSHA Liabilities During M&A Transactions

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1. A Nightmare Acquisition - Your Company has recently acquired a small logistics company with a strong business reputation. Eighteen days after the acquisition was finalized, you receive a call that there has been a...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

Proskauer Rose LLP

Del. Ruling Shows Tension Between 363 Sale And Labor Law

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Navigating the Bankruptcy Code can present many traps for unsuspecting debtors, creditors or asset buyers. The U.S. District Court for the District of Delaware recently reminded bankruptcy participants of an often overlooked...more

Proskauer Rose LLP

“Free and Clear” Collides with “Perfectly Clear”: Delaware District Court Imposes Successor Liability on Buyer in 363 Sale

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Navigating the Bankruptcy Code can present many traps for unsuspecting debtors, creditors, or asset buyers. The Delaware District Court recently reminded bankruptcy participants of an often overlooked pitfall involving the...more

Freeman Law

Texas Tax Roundup | September 2023 | Insurance, Data Processing, Video Games!

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Hi folks! Welcome back to the Texas Tax Roundup, September 2023 edition. We got some insurance services, data processing services, and amusement services (a pretty sales tax heavy last month). Let’s see what went down!...more

Integral Consulting Inc.

Successor Liability Involving Environmental Cleanup Costs

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What You Think Won’t Be an Issue Might Be – Don’t Wait to Assess Environmental Liabilities - Total commercial real estate transactions in 2022 were valued at approximately $1.14 billion. As events of environmental...more

Littler

New Jersey Adopts Changes Affecting Service Employees During Changes in Ownership

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Governor Philip D. Murphy recently signed Assembly Bill 4682 / Senate Bill 2389, establishing various employment protections for specific “service employees” during changes of ownership. This bill goes into effect on October...more

Goldberg Segalla

Appeals Court Affirms NYCAL Judge’s Denials of Motions to Dismiss on Successor Liability Grounds

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Court: Supreme Court of New York, Appellate Division, First Department - Defendant P.B. Heat previously moved to dismiss multiple complaints in New York City Asbestos Litigation (NYCAL) cases…...more

Husch Blackwell LLP

Indiana Legislation Impacts Mobile Workforces and Asset Acquisitions

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On May 4, 2023, Indiana Governor Eric Holcomb signed legislation (Laws 2023, SB419) that, among other tax changes, included provisions to exempt from income tax nonresidents receiving compensation for employment duties...more

DarrowEverett LLP

Don’t Let Bad Indemnity Provisions Become Your Environmental Disaster

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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

Wiley Rein LLP

FCA Successor Liability: Taking Lessons From a Recently Unsealed Complaint

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When contemplating an acquisition, companies rely upon the due diligence process to discover the target’s potential liabilities, such as False Claims Act (FCA) liability, so they can proceed accordingly. This may involve...more

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