07-07-2003, 04:10 PM
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I'm Lenny2 Bitch
Join Date: Mar 2001
Location: On top of my soapbox
Posts: 13,449
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Quote:
Originally posted by scoreman
My take on this is that FM sold his business but was required to have an escrow account to cover representations and warranties made to the new owners. This is common practice in the sale of companies, as is the employment contract for ongoing management after the sale. A potentially huge liability from Acacia throws a monkey wrench into this sale. So FM settles with Acacia to remove this potential liability. While I am sure this can be fairly characterized as a move to protect CE's ongoing business, this looks like it also was protecting the sale of CE from running afoul. To me this shouldn't be read as a testament to the strength of Acacia's case since there were issues here that are unique to CE and not the adult industry as a whole.
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Very good points.
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