Corporate Law News

#MeToo Provision Becoming Standard Safeguard in M&A Deals

June 27, 2019, 10:53 AM

Forty-five merger agreements over the past year have included #MeToo movement-inspired provisions saying that company leadership hasn’t been accused of sexual harassment or misconduct, according to a Bloomberg Law analysis.

The language, written into a representation and warranty, has appeared in deals of all sizes, including Salesforce.com Inc.'s pending $15.3-billion purchase of Tableau Software Inc. Two other recent mega deals, WellCare-Centene and WorldPay-Fidelity, feature identical sexual harassment clauses for both the buyer and the company being bought.

The “reps” as they’re known in deal jargon, are on track to become a standard safeguard for the risks of sexual harassment allegations...

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