Can a new business owner be sued for prior owners transaction? -

If this is a corporation and the corporation is being sued then absolutely. If the company is a partnership or sole proprietorship, than it may be possible to get the suite dismissed or redirected to the prior owner. If the prior owner committed some sort of fraud or knew about the impending lawsuit before selling to you, then you could sue them for bad faith or breach of duty or something like that.Realistically, you should find an attorney and review the situation and your options. Lawsuits are extremely expensive no matter what the outcome, so settling or dealing with this as quickly as possible is always the best bet.

Hi Sarah,Often times if you can prove that the transaction took place prior to you being there, you should be in the clear. Since there are so many different areas that this could cover, it s probably best for you to consult an attorney. As a business owner, your 3 best friends are a good lawyer, a good accountant and a good personal banker. If the previous owner was aware of the pending lawsuit, that could also be an issue in your favor.To your Success,Fernando