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Expert Analysis

Lost-Profit Waivers — Beware Unintended Consequences

Law360, New York ( May 14, 2014, 4:11 PM EDT) -- Many acquisition agreements contain boilerplate excluding recovery for punitive, special and consequential damages. The clause may also include "lost profits" as an example of "consequential damages" or sometimes as a separate item that is excluded from recovery. The parties should pay attention to this boilerplate to avoid the unintended result that lost profits are not recoverable even if such lost profits are a direct result of the transaction contemplated by the acquisition agreement....

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