News & Analysis as of

Successor Liability

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

Goldberg Segalla on

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.”

Tucker Arensberg, P.C. on

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”

Seyfarth Shaw LLP on

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

Integral Consulting Inc. on

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

Littler on

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

Goldberg Segalla on

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

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

Wiley Rein LLP

FCA Successor Liability: Taking Lessons From a Recently Unsealed Complaint

Wiley Rein LLP on

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

McGlinchey Stafford

Do I Have Standing in Florida State Court? Not So Fast.-McGlinchey Commercial Law Bulletin - January 20 2023

McGlinchey Stafford on

Ohio- Liquidated Damages- Pacetti’s Apothecary v. Rebound Bracing & Pain Sol. Inc., 2d Dist. Greene, No. 2023-Ohio-93. In this appeal, the Second Appellate District affirmed the trial court’s decision finding that a late...more

Goldberg Segalla

Summary Judgment Not Warranted Where Issues of Material Fact Exist on Successor-Liability Issues

Goldberg Segalla on

Supreme Court of New York, County of Erie , August 25, 2022 - In this asbestos action, plaintiff Eric Cislo alleged take-home exposure to asbestos from his father’s work with Bison boilers from 1969 until the early...more

Arnall Golden Gregory LLP

Considerations for Incoming Operators of Senior Living Facilities to Mitigate Risks With Distressed Former Operators: A Case...

An incoming operator of a senior living facility should consider and mitigate risks of potential successor liability when agreeing to operate a new facility.1 This is particularly true when the former operator has filed for...more

FordHarrison

U.S. Department of Labor Issues Proposed Rule Prohibiting Displacement of Workers for Service Contract Act Jobs

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On July 14, 2022, the Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) which requires that non-displacement clauses be included in successor contracts for current contracts covered by the Service...more

Freeman Law

Successor Liability for Unpaid Taxes

Freeman Law on

Generally, the purchaser of assets does not assume the liabilities of the seller.  Successor liability, however, is an exception to the general rule. Under the successor-liability doctrine, the IRS may seek to recover unpaid...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

Freeman Law

Texas Tax Roundup | March 2022

Freeman Law on

Huh whuh? . . . Well . . . Well, howdy! Nice, erm, um well . . . Nice to see ya’ll again at or near this nebulous home home on the range of Texas taxability! Welcome back to another tax-packed installment of all things Texas...more

Jackson Lewis P.C.

Don’t White-Knuckle Withdrawal Liability

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It’s no secret that the statutory deck under ERISA is stacked heavily in favor of multiemployer pension plans (MEPPs) and against employers contributing to (or withdrawing from) Taft-Hartley trust funds....more

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