What types of disputes can arise during a merger or acquisition?

Mergers and acquisitions (M&A) are complex business transactions that can involve a variety of parties and create numerous potential disputes. One primary type of dispute that can arise during an M&A is a breach of contract. If parties to the transaction fail to fulfill their legal obligations under the contract, such as delivering an asset on time, it can lead to a dispute. Additionally, a dispute may arise over the terms and conditions of the agreement as parties may disagree as to what was agreed or the interpretation of the contract. Disgruntled shareholders may also initiate litigation in connection to the M&A. Shareholders can dispute the approval process and allege that it did not comply with all applicable laws or the terms of the shareholders’ agreement. Similarly, minority shareholders can sue if they believe that the outcome of the M&A was unfair to their interests as a shareholder. Additionally, anti-trust laws, which are designed to preserve an atmosphere of competition in the market, can create a dispute in the context of an M&A. The Department of Justice often evaluates each proposed M&A to ensure that it is not an illegal attempt to monopolize a particular industry or market. Parties may also challenge certain aspects of the M&A as being unfair or unlawful under the antitrust laws. Finally, disputes may arise between the parties to an M&A involving claims of fraud, misrepresentation, or other intentional wrongdoing. Such disputes may involve allegations that one of the parties failed to disclose material facts or provided false or misleading information in connection to the M&A. Any of these disputes can be difficult and expensive to resolve, and proper legal advice should be sought to protect the interests of all parties involved.

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