M&A lawyers are well aware of the importance of assessing the possibility of litigation when their companies (or clients in the case of external lawyers) are acquiring new companies. No company likes to get sued, and even less so when this relates to actions taken by a predecessor.
We have discussed elsewhere that anticipating and quantifying litigation risks is increasingly challenging to do when it comes to a target company’s human rights-related actions: we now have a surge in human rights-related litigation and law suits against companies for allegations of past human rights violations, resulting in acquisitions that can end up costing significantly more than anticipated.