Tuesday, April 21, 2015

What is a corporate legal hold on product from an acquired company?

Question

What is a corporate legal hold on product from an acquired company?



Answer

s a Franchise Attorney I must ask you to provide more detail. What do you mean by "corporate legal hold?" What is the product? What are the acquisition details? Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation



Answer

I would be careful about using that product if I were you!

It may be true that the company at issue is under a duty to preserve records relative to the product.

If you are, for example, looking at a disclosure document from a stock you own, it could be that the acquiring company purchased a company that is at risk of being sued in a product liability lawsuit. Whether that is significant is, of course, totally unclear. In Federal Court litigation, it can be dangerous to destroy records.

Boston Attorney



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