Deals Gone Sideways: M&A Litigation in COVID-Churned Markets

The COVID-19 pandemic has roiled the waters of M&A litigation from several compass points:

A wave of “busted deal” M&A litigation is cresting, with buyers seeking to cancel transactions and sellers suing to compel them. 

We Explored:

• Evolving contractual MAE definitions, carveouts and exceptions to carveouts
• Use of covenants and closing conditions (e.g., the “ordinary course” covenant) as potential “escape hatches”
• What it all may mean for the future of MAE litigation

Post-closing private company M&A disputes have also been rocked. 

We Examined:

• R&W Insurance-related issues including strategies to maximize the value of current policies and to navigate around COVID exclusions
• Potential impact on earn-out litigation