On behalf of Kadish & Anthony Law Group posted in Business Litigation on Thursday, November 5, 2015.
Buying an Arizona company requires a great deal of due diligence to ensure that all legal and business issues are explored. In many cases, it is necessary to rely on the seller to receive a good portion of that information. When it is later discovered that the seller may have committed fraud by not providing accurate information or omitted relevant details all together, it may be necessary to file business litigation in order to come to some resolution.
It is tantamount to fraud for the seller of a business to misrepresent information related to income, expenses or customers/vendors. The buyer most likely relied on such information when determining purchase price and making the decision to buy the company. By the time the buyer discovers that the seller might not have been truthful, it may be too late to back out of the deal.
If this is the position in which you find yourself, it may be a good idea to involve an attorney in order to explore your options. The purchase contract and all of the documentation provided to the buyer will be reviewed to determine whether false information was provided. An interview with you will also be conducted to gain an understanding of how the information you received prior to the sale differs from reality.
After the inaccuracies and/or omissions are identified, it will then be necessary to determine what it is you want from any business litigation. It is possible to request both economic and non-economic damages from an Arizona court. Your attorney can help you determine what actions have the best chance of meeting your business and legal goals.