San Diego Business Misrepresentation Attorney
Do have the basis for a legal case for business misrepresentation in San Diego? Is it possible to reduce or eliminate the risk of business misrepresentation in a buy/sell transaction?
If you are considering the purchase of a business or a merger or acquisition the importance of extensive due diligence cannot be overstated. The experienced San Diego business attorneys at the Watkins Firm have decades of experience in buy/sell transactions and provide sound counsel to the parties as well as business brokers who develop an facilitate these important transactions.
Acquiring a business or merging with another company can represent an exciting opportunity for any entrepreneur or business. Our attorneys provide sound business counsel and support all aspects of these transactions to discover the genuine reputation, goodwill and financial performance of the target company, as well as any future or contingent liabilities which might exist.
However, misrepresentation and failure to disclose issues as well as actual business fraud can disrupt an otherwise successful transaction, regardless of the amount of due diligence conducted prior to the completion of the transaction. The good news is it is absolutely possible for the Watkins Firm to pursue your business misrepresentation case and recover appropriate monetary damages for an intentional business misrepresentation.
What is Misrepresentation in a Business Transaction?
Business misrepresentation usually occurs when the seller attempts to lie about any facet of the transaction, conceal important material information or facts or fails to disclose known issues or potential liabilities. In order to prove misrepresentation in a California Court our business litigation attorneys must establish that the seller knew of the falsehoods or concealed information, intended for you to rely upon these to complete the transaction and the misrepresentations were part of the information you relied upon in order to make your decision about the transaction.
We must also establish the facts surrounding the impact of the misrepresentation(s), falsehood or concealed information and the monetary damages you have suffered as a result.
It is important to note that the misrepresentation does not have to be a falsehood. For example, the seller may be aware of a new competitor or development within the business itself or the industry as a whole which could or would threaten the viability of your acquisition. This can include the approaching loss of a major customer or contract.
However, if the issue at hand is simply an expressed opinion such as “Our industry is growing fast and you are bound to succeed” it is not an untrue misrepresentation. It is merely the expression of an opinion.
What is Negligent Misrepresentation?
The seller may attempt to reduce their exposure to misrepresentation by claiming they had no idea or genuine knowledge that the information you relied upon was inaccurate. However, the Watkins Firm may still be able to pursue an action against the seller on your behalf based upon “negligent misrepresentation.” The seller is still potentially liable for your monetary damages if they did not exert “reasonable care” or did not competently verify the information disclosed.
Contact San Diego Business Misrepresentation Attorneys
Buy/Sell transactions, acquisitions and mergers are quite legally and financially complex. It may seem difficult to determine if the seller failed to disclose important facts or if you’ve relied on business misrepresentation to make an important decision. This is why it is important to review the strong recommendations of our former clients and contact the Watkins Firm or call 858-535-1511 for a free consultation or to schedule an appointment to discuss your unique case.