You did your due diligence, found the perfect company to purchase, and negotiated a fair price, but once you took over the business things were not as they had been represented. Business sale fraud is unfortunately a very real threat that far too many business purchasers have experienced.
What is Business Sale Fraud Litigation?
Business sale fraud litigation is legal action against a seller who has misrepresented or omitted key information about the business being sold. Often times, this information was material to the decision of whether or not to purchase the business. Seller fraud can take many different forms, including:
- • Falsifying financial statements in order to inflate the value of the business
- • Exaggerating future growth prospects
- • Failing to disclose known liabilities or potential lawsuits
- • Making false promises about existing contracts or relationships with key customers or suppliers
Protecting Yourself Against Business Sale Fraud is Difficult
Even if you thoroughly investigated all aspects of the business, from its financials to its relationships with key stakeholders, you may not have uncovered seller misrepresentations and concealments before the purchase. If so, you’re not alone.
If you believe that you have been the victim of business sale fraud, there are legal remedies available to you, and we can help you understand your rights and options under the law. In some instances, it may be possible to rescind the deal and recover damages. In other cases, litigation may seek compensation for the difference between what you paid for the business and what it’s actually worth. Regardless of the specific circumstances of your case, we can provide guidance and support throughout the process.
We help business buyers in Orange County and Los Angeles County when things go wrong. Call us today for an initial consultation to understand how to protect your rights and preserve your legal options.