Seyfarth Synopsis: In acquiring a company in bankruptcy, there is often a tendency to think this guarantees the purchaser will be “free and clear” of any liability (including so-called “successor liability”). This is not necessarily so with wage and hour liability, particularly if the purchaser merely continues to operate virtually the same business that was acquired.
USA, Employment & Labor, Insolvency & Restructuring, Seyfarth Shaw LLP, General contractor, Due diligence, Coronavirus, Fair Labor Standards Act 1938 (USA), Title 11 of the US Code