The Fraud Factor: Strategic Approaches to Carve-Outs in Acquisition Agreements

Contractual disputes regarding allegations of fraud are often complex, time-consuming, and expensive to litigate. Parties may amicably negotiate an acquisition agreement without even considering whether fraud could surface as an issue before or after the closing. Some parties still execute acquisition agreements that fail to define fraud or that include a non-reliance provision rendering fraud carve-outs useless. To best serve your client's interests and avoid potentially complex, time-consuming, and costly disputes after an acquisition agreement is signed, you should negotiate fraud definitions and carve-outs.   

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