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COVID-19 Measures in Reps and Warranties

March 02, 2022

COVID-19 Measures in Reps and Warranties

In 2021, new variants of the SARS-CoV-2 virus caused resurgences of COVID-19. It is still too soon to fully assess the potential risks and liabilities associated with measures taken (or not taken) by companies and their subsidiaries in response to the pandemic, especially when it comes to employment matters. As a result, many buyers seek fulsome disclosures and pandemic-specific representations and warranties about the target business. Sellers, on the other hand, argue that responses to COVID-19 are sufficiently covered by reps and warranties without adding pandemic-specific references. Explore examples of negotiated reps and warranties that address COVID-19 measures.              

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