Legal Question in Business Law in Florida
I had a company that I merge with my new company 2 years ago. Someone is now sueing my old company saying I did not pay them the right wages. Does that effect the assets of my new company.
2 Answers from Attorneys
The legal liability of the new company for causes of action related to the former company depends on the nature of the merger. Often, the new company assumes all benefits and liabilities of the old company. You are advised to review the merger details and perhaps discuss with an attorney experienced in mergers, acquisitions, and corporate law.
As a Franchise Attorney with some experience in acquistions - mergers, I entirely agree with the other attorney answer. It depends on the nature of the merger. Another complicating factor is the position the state labor commission takes if they get involved in this dispute. Best to 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
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