M&A Post-Closing Claims for Breaches of Reps and Warranties: Strategies for Pursuing or Defending Recovery
Identifying Trouble Spots That Risk Post-Closing Losses, Impede Recovery, or Undermine Defenses

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Commercial Law
- event Date
Wednesday, September 28, 2022
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will examine the types of post-closing breach claims that arise most frequently in M&A transactions. The panel will share practical tips to help buyers and sellers negotiate and draft more robust deal documents and discuss litigation strategies that should prove useful to parties who find themselves entangled in reps and warranties breach disputes. The panel will also address the pros and cons of representation and warranty insurance, which can shift the risk of reps and warranties breaches to a third party.
Faculty

Mr. Tolmaire is a Senior Director at FTI Consulting in the Forensic and Litigation Consulting practice. He performs assessments of economic damages such as lost profits, excess costs and diminution in value for companies involved in disputes. Mr. Tolmaire’s work with merger and acquisition disputes has involved assisting buyers and sellers in disputes around working capital, earnouts, and damages resulting from breaches of representations and warranties in sale and purchase agreements. He has also presented on the topic of assessing damages in merger and acquisition disputes and has written an article on working capital disputes.

Mr. Ogurick is a partner in Pryor Cashman’s Corporate Group and a member of the Mergers + Acquisitions, Private Equity, and Securities + Corporate Finance Practices. He provides counsel to public and private companies in the U.S. and around the world, private equity firms and their portfolio clients, family offices, investment companies, venture capital funds, entrepreneurs, and sponsors on a wide range of capital markets and corporate transactions including IPOs, up-listings, SPAC and de-SPAC transactions, equity line financings and PIPE transactions, convertible debt and equity transactions, SEC reporting and compliance, national exchange listings, legal opinion practice, mergers and acquisitions, joint ventures, and structuring, formation, and funding of real estate development, technology, and early stage companies.

Mr. Weldon is a Practice Group Coordinator of K&L Gates’ International Arbitration Group. His practice focuses on international commercial and treaty arbitration, complex international commercial litigation, and public international law.
Description
Post-closing claims for breaches of representations and warranties are common in the context of M&A transactions, and they can expose sellers to millions of dollars in unexpected liabilities. From a buyer's perspective, inadequate representations or obstacles to recovering for breaches of reps and warranties can chip away at the value of an acquisition--or eliminate it.
Attorneys who negotiate M&A deals or litigate disputes arising from breaches of reps and warranties can achieve better outcomes for their clients--whether buyers or sellers--by focusing on "trouble spots" where post-closing losses are likely to arise. Counsel should identify weaknesses in transaction documents that impede recovery or undermine a defense and develop workarounds to address these pitfalls.
Listen as our authoritative panel discusses situations that often lead to reps and warranties breach claims, opportunities and pitfalls when pursuing or defending against recovery for losses resulting from a breach, and the latest developments in the use of M&A reps and warranties insurance to supplement or replace other options for recovery.
Outline
- Common sources of M&A reps and warranties breach claims
- Strategies for pursuing claims
- Strategies for defending claims
- Leveraging M&A reps and warranties insurance
Benefits
The panel will review these and other critical issues:
- Which reps and warranties in the M&A agreement are most commonly subject to breach claims?
- What are best practices for buyers pursuing breach of reps and warranties claims?
- What are some strategies for sellers to defend against a breach of reps and warranties claim?
- How can M&A reps and warranties insurance help mitigate the risk of loss for buyers and sellers?
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