Dealing with pending or threatened litigation in M&A

By nrfdigitalteam on December 11, 2019 Posted in Litigation, M&A

A significant consideration when considering an M&A target can be the impact that pending or threatened litigation has on the proposed transaction. While some organizations may balk at the idea of acquiring a target that is (or is likely to be) the subject of a lawsuit, such companies are often available at significant discounts to … Continue reading

Can a cause of action be assigned in a corporate transaction?

By Rowan Weaver on December 13, 2016 Posted in Litigation, M&A

What happens when a key asset of a target corporation is a cause of action? Can it be assigned to the purchaser in an asset purchase or to a “Newco” in a corporate restructuring? It is a longstanding common law principle that a bare right of action in tort is not assignable. This is because … Continue reading

Post-deal litigation: what it is and how to avoid it

By Troy Ungerman (Toronto) on October 23, 2014 Posted in Corporate finance, Litigation

A recent article by PWC which appeared in Lexpert Magazine draws attention to a phenomenon that is pervasive in the United States and is becoming much more common in Canada: post-deal litigation. What is it? Increasingly, shareholders are filing lawsuits to challenge M&A transactions. The litigation often takes the form of a class action, with … Continue reading