Manufacturing company obtains settlement in accounting discrepancy dispute

Client(s) Manufacturing company

Jones Day represented a manufacturing company in a dispute against the former owner of a small manufacturing company that it acquired. After the acquisition, the company’s internal audit team revealed significant accounting discrepancies in the newly acquired company's reports and books. It became apparent to the company that the former owner had deliberately overstated the financial success of his company in order to secure for himself a higher purchase price. Jones Day acted quickly to interview key witnesses, gather documents, and analyze the company's finances, in preparation for filing a lawsuit. After informing the former owner of the significant claims he could be facing, the owner engaged in settlement discussions. Ultimately, the company obtained a significant settlement from the former owner.