Unfunded Pension Liabilities: Caveat Emptor, Caveat Esquire

By Douglas Darch and Alexis Hawley (September 25, 2017, 1:09 PM EDT) -- Ask any lawyer and they will tell you that, outside of a stock sale, a purchasing company has substantial control over the liabilities it acquires from the target company. Two recent federal court decisions, however, demonstrate the limitations of this general rule when unfunded pension liabilities are at issue. These decisions (one of which involves a malpractice claim against the attorneys who advised the purchaser on a transaction) demonstrate the unanticipated legal risks unfunded pension liabilities create and the extent to which courts are willing to stretch the law to find deep pockets....

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