Recently, The Deal’s Rhonda Schaffler spoke with Jeremy I. Levy, an attorney in the corporate and securities practice at Pepper Hamilton, about allegations of fraud in private equity portfolio companies. Current law puts the buyer in a good position to allege fraud, while the seller is in a difficult position to dismiss it.
Mr. Levy discusses how agreements can be structured to protect PE firms.
For a more in-depth look at defining fraud on the part of a seller in PE deals, please read "A 'Magic Perspective' on Fraud by Sellers in Private Equity Deals."