Legal Question in Business Law in California

Re: Selling business giving intentional false information

We would need to know more facts to properly advise or assist you in this very unfortunate matter, especially the amount of monetary damages you would be suing for. Contact us directly for a free phone consultation.

Re: Selling business giving intentional false information

For starters . . .

1. How much did you pay for the business?

2. How do you know the information provided was false?

3. Does the seller own a home or otherwise have enough assets to allow for collection?

-Ben

Re: Selling business giving intentional false information

You can start with the local Bar Association and ask if they have a referral program. You will need to locate an attorney willing to do business litigation on a contingency. The damages if your case must be substantial enough to warrant taking the case on a contingency. The only way to ascertain this is to have an attorney review the underlying facts.

We are business litigators, and we handle a large volume of collection litigation. The bulk of our collection cases are accepted on a contingency basis. If/when you are ready to proceed, please feel free to contact us via email or telephone. We will have to review all relevant documents, but all consultation is at no charge.

Re: Selling business giving intentional false information

You didn't mention whether your agreement to purchase the business was in writing, nor whether it contains any of the following:

1) A express representation and warranty that the sales and profits figures furnished are correct;

2) An attorney fee clause;

3) Anything about how the figures were prepared, i.e. that they were compiled, reviewed or audited by a third-party professional.

Many attorneys will take business-fraud cases on partial or complete contingency IF they are reasonably satisfied that the case is winnable and that the judgment can be collected. Having an attorney-fee provision is helpful if the case is strong; that shifts the fee burden to the losing party.

A written agreement where the seller warrants the numbers is helpful.

The biggest issue here is likely to be proving that the sales and net profit figures given you were indeed significantly different from the true numbers, and the seller knew this.

Re: Selling business giving intentional false information

I'm in Beverly Hills. Just call.

Re: Selling business giving intentional false information

If the seller is just a scam artist that will disappear, then you are left with filing criminal charges -- if you can convince the police and DA to do so. If you have credible evidence of the misrepresentation, and IF the seller is someone from whom you could actuallly recover your money, then it is possible to do such case on a contingency or a variant of it. Under those conditions, feel free to contact me if interested.