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Corporations Keyed to Hazen
Protocomm Corp. v. Novell, Inc.
Citation:
171 F.Supp.2d 459 (E.D.Pa.2001)Facts
In January 1993, Novell began investigating the possibility of investing in Fluent. The ProtoComm I suit was filed on January 29, 1993. Upon discovering the lawsuit, Novell told Fluent that the investment activities would cease until the suit was settled. On March 19, 1993, David Bradford, Novell’s senior vice president, sent a draft letter of intent to Cornelius Ferris, Fluent’s President; the letter contemplated that the acquisition would take the form of an asset purchase. Where the April 28, 1993 letter had included the language that Novell would acquire all of the business, assets, and obligations of Fluent, the actual agreement, dated June 4, 1993, excluded such language. On July 7, 1993, the acquisition occurred. The litigation had not ended at the time of the closing.
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