Is it legal for someone to misleadingly say they will do a merger, then call it off but sign with someone else day after?

Asked about 1 year ago - Raleigh, NC

My company was going to partner with another company and the day before the signing, he called the deal off. The thing is, the day after he called ours off, he partnered with 2 ex-employees and gave them the same deal. He mislead us as we had given him all of our strategy, financials, and customers. He has now used that information against us and taking our customers and saying negative things about us just so he can boot us and take the job. I am not trying to sound whiney but this has really caused lots of stress for me as I have also gotten threats from his employees that say they will hurt me and my family if I try and take action with anything. I do not think it is legal for someone to mislead me like that I also had non competes w/ his employees and they stole 15,000 in my equipment.

Attorney answers (3)

  1. Brice Mclane Bratcher

    Contributor Level 7

    Answered . You likely have a number of potential claims, including a claim under North Carolina's Unfair and Deceptive Trade Pratices Act. As the previous attorney said, you should definitely contact an attorney in the Raleigh area to go over all of this in great detail. Only then will a definitive answer be available.

    Best of luck,

    This answer and advice is general in nature and not intended as specific legal advice on the issue in question,... more
  2. Douglas E. Portnoy


    Contributor Level 12

    Answered . You need to contact a lawyer to evaluate your claims. You may have claims for slander or unfair trade practices or misrepresentation depending on the circumstances and your damages.

  3. Pearlette Vivian Toussant


    Contributor Level 17


    Lawyer agrees

    Answered . You may have claims against the other company, however, it is hard to tell exactly what claims (and their strength), based on the few facts that you've given. The circumstances surrounding the giving of the strategy, financials, and customers, will have to be explored during a consultation with an attorney. The Non-compete agreements will need to be reviewed. Consideration will also be given to filing with insurance and police regarding the stolen equipment. Avvo has a great "Find a Lawyer" tool you can use to find an attorney. Best of luck.

    Answer given for general advice and is not a legal opinion, which would require an analysis of the facts and... more

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