IT Company Sellers Get Acquisition Securities Claims Revived – Bloomberg Law

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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
Americas+1 212 318 2000
EMEA+44 20 7330 7500
Asia Pacific+65 6212 1000
By Shweta Watwe
The acquirers of IT services company Red River Solutions LLC were wrongly awarded summary judgment on claims alleging that $2 million in post-acquisition ownership share valuation was wiped out because those buyers failed to disclose their CFO wasn’t sticking around, a federal appeals court said Wednesday.
The district court erred by failing to construe inferences in favor of the nonmoving party, the sellers, whose “cascading” gaps in facts created a genuine dispute over whether the sellers had met the material loss causation element for their claims, the US Court of Appeals for the Fifth Circuit said in a per curiam …
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