Clark Hill’s Michael Croghan Initiates M&A Fraud and Earnout Litigation
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Michael P. Croghan , David W. Centner , Nicole Prefontaine
Clark Hill litigation member Michael Croghan recently initiated an M&A fraud and earnout litigation in the U.S. District Court for the Western District of Michigan.
The case arises out of the sale of a cloud company in 2021 and Clark Hill represents the seller and its principals. The lawsuit alleges fraudulent inducement, breach of post-closing operational covenants relating to the escrow holdback and earnout, breach of a promissory note used to finance the sale, and challenges the enforceability of restrictive covenants entered into in connection with the transaction.
The case is RTAE Holdings LLC, Trimberger, and Ebertowski v. Vervint, LLC, formerly known as Open Systems Technologies DE, LLC, a subsidiary of Koniag Capital LLC, Case No. 24-CV-00030 (W.D. Mich.). Clark Hill attorneys Michael Croghan, David Centner, and Nicole Prefontaine represent the clients in this matter.