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Massachusetts Mergers & Acquisitions Questions & Answers
Q: legal compensation for wrong defendant ?

BK case no: 11-43424-CJP, BAP No: MW19-016

Timothy Denison
Timothy Denison
answered on Mar 8, 2019

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1 Answer | Asked in Business Law and Mergers & Acquisitions for Massachusetts on
Q: if a business is being sued and is sold to another party, who is liable for the lawsuits if you lose? New owner or old?

staffing agency I work for is being sued by two people. the owner is old and doesn't have much longer to live. If she sold it to me and I changed the name do I have any responsibility for those lawsuits? Or is it on the old owner who sold the business? thank you

Jonathan R. Roth
Jonathan R. Roth
answered on Dec 27, 2017

The probable answer is that both of you would be responsible depending upon if substantially all of the assets of the first company were sold to a new company. You could buy the company and get an indemnification.

The initial liability stays with the first company. The second company...
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