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September 24, 2021

M&A Watch: Contractual Fraud: ‘Too Much Dynamite’ Can Blow Enforceability

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M&A WATCH: CONTRACTUAL FRAUD: ‘TOO MUCH DYNAMITE’ CAN BLOW ENFORCEABILITY

On August 12, 2021, Vice Chancellor Slights of the Delaware Court of Chancery, in Online HealthNow, Inc. and Bertelsmann, Inc. v. CIP OCL Investments, LLC, et al (Del. Ch. August 12, 2021), denied defendants’ (seller’s) motion to dismiss a buyer’s post-closing fraud claims arising from representations and warranties in a purchase agreement that allegedly were known to be false when made, noting that a seller may not use a limitation of liability clause in a contract obtained by fraudulent inducement to bar a buyer’s fraudulent contract claim.

Read the full memo, “Contractual Fraud: ‘Too Much Dynamite’ Can Blow Enforceability.”

Authors and Contributors

George Casey

Partner

Mergers & Acquisitions

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+1 212 848 8787

New York

Scott Petepiece

Partner

Mergers & Acquisitions

+1 212 848 8576

+1 212 848 8576

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Alan S. Goudiss

Partner

Litigation

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+1 212 848 4906

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Daniel Litowitz

Partner

Mergers & Acquisitions

+1 212 848 7784

+1 212 848 7784

New York

K. Mallory Brennan

Partner

Litigation

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+1 713 354 4847

+1 212 848 7657

+1 212 848 7657

Houston

Lara Aryani

Partner

Mergers & Acquisitions

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+1 212 848 7556

New York

Grace Jamgochian

Partner

Mergers & Acquisitions

+1 212 848 8393

+1 212 848 8393

New York

Derrick Lott

Partner

Mergers & Acquisitions

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+1 212 848 7421

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Roger Morscheiser

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Mergers & Acquisitions

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+1 212 848 7422

New York